India continues to make anti-crypto decisions as it now seems that public offering promoters (IPO) may have no choice but to sell the crypto they hold before they have the right to partake in raising funds.
It seems that the Securities Board of India plans to disqualify IPO promoters from raising funds if they hold crypto.
The move is seen as an extension of SEBI’s instructions to securities lawyers, merchant banks, and stakeholders regarding cryptocurrency.
A securities lawyer commented for the Economic Times: “There could be a direction from the government in this regard. The market regulator seems to think that this could become a risk for investors if a promoter holds an asset that is illegal in the country.”
Speculations that India may soon ban crypto have been around for some time now, and it looks like crypto holders will have between three and six months to liquidate all digital currency they own as soon as the ban comes into effect.
Earlier this month, it was reported that the Indian parliament was actively trying to fast-track the crypto bill.
In the unlikely case that the ban doesn’t take place, some investment bankers believe that SEBI could still prohibit IPO promoters from holding crypto. Mahesh Singhi from the investment banking firm Singhi Advisors declared that SEBI was afraid that IPO promoters could divert funds raised from public sales to speculative investments.
The only solution IPO promoters have come up with, for now, is an affidavit that states that they shall liquidate all crypto holdings in 24 hours if the rumored crypto ban will come into effect.