Bombay Stock Exchange Blocks Firm’s IPO for Crypto Fund Use

BSE rejects Jetking Infotrain’s IPO as most proceeds were planned for crypto fund amid policy uncertainty on digital assets.

The Bombay Stock Exchange (BSE) has denied approval for the listing of Jetking Infotrain’s shares after discovering its fundraising plans centered on crypto investments. The IT training company wanted to raise over 60% of the Rs6 crore through a preferential stock offer and over 60% of these proceeds via virtual digital assets (VDAs). Regulatory uncertainty was given as the reason for halting the application by the exchange.

BSE Rejects IPO Citing VDA Policy Review

Jetking Infotrain received in-principle approval from BSE in May 2025. Its board passed a resolution to allot 3.96 lakh shares. However, the company planned to use Rs 3.96 crore, nearly two-thirds of the issue, to acquire VDAs. This allocation became a sticking point in the context of continuing review of investment policies relating to digital assets.

A BSE spokesperson explained that when the application was being processed, the final approval was postponed to consult the regulators. After internal review and revision of the norms, the exchange eventually rejected the IPO proposal. The decision highlights the fact that digital asset-linked business plans are still very much under the lens despite the rise in adoption around the world.

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Siddharth Bharwani, Jetking’s joint MD and CFO, said the company will appeal to the Securities Appellate Tribunal. He said India’s regulatory approach is inconsistent. He added that the Supreme Court clarified in 2020 that cryptocurrencies are not illegal but need regulation. Jetking is now looking at its options to continue onwards in spite of the setback.

Crypto Regulations Pose Ongoing Hurdles for Firms

The rejection is symptomatic of wider problems encountered by Indian firms with exposure to cryptocurrencies. Authorities currently consider crypto to be intangible assets, as opposed to securities and currencies. This leaves businesses in a grey zone where activities involving VDAs cannot be classed as traditional financial services:

Industry observers flag that crypto-linked businesses are limited in terms of foreign investments and compliance with the Foreign Exchange Management Act (FEMA). However, entities with completely domestic shareholder bases may avoid such complications. Analysts say companies using crypto treasuries as a main capital source will face barriers in capital markets until rules are clear.

The case also underlines the fragile balance India is trying to keep between innovation and financial oversight. While international exchanges and regulators have slowly moved in the direction of such structured frameworks, Indian foresees are reluctant. Critics worry such decisions will endanger blockchain and crypto-focused enterprises looking for friendlier countries overseas.

At the same time, experts suggest, the BSE’s move was a defensive one. With no clear policy on crypto assets, letting IPO money flow into volatile instruments can put investors at risk beyond what is in place to protect them. Market participants anticipate more clarity as the government finalizes its stance on VDAs and integrates them into securities laws.

For now, the rejection of the Bombay Stock Exchange crypto IPO is a strong signal. Until India has set everything down, companies with substantial exposure to virtual assets will have a challenging time tapping the public markets. The result is potentially how startups structure their fundraising strategies in one of the world’s fastest-growing digital economies.