BSE Shuts Door on Jetking IPO Over Bitcoin Holdings, Raising Policy Questions

BSE Denial Highlights India’s Reluctance Towards Crypto Treasuries

The debate over cryptocurrency regulation in India has resurfaced after the Bombay Stock Exchange (BSE) denied Jetking Infotrain’s application to list its shares, citing the company’s decision to invest part of its raised funds into crypto treasuries. The move has reignited questions about whether India is ready to embrace digital assets as part of corporate balance sheets or whether skepticism will continue to dominate the policy landscape.

A Sudden Reversal Leaves Jetking in Limbo

Jetking Infotrain, a Mumbai-based IT training and education firm, had successfully raised ₹6.1 crore earlier this year through the issuance of 3,96,156 equity shares at ₹154 each on a preferential basis. The company disclosed that part of the proceeds would be allocated to virtual digital currencies—a decision that aligned with a growing global trend of corporations diversifying their treasuries with Bitcoin and other digital assets.

Source: X

Initially, the move seemed to pass regulatory scrutiny. On May 9, 2025, Jetking received in-principle approval from the BSE. By May 23, the board formally approved the preferential issue, and by June 10, the company had filed its listing application. However, in a surprising turn of events on September 24, the BSE returned the application.

In its official communication, the exchange explained:
"The rationale for the issue is investment in virtual digital assets is of speculative nature. Policy on this front is being considered and applications of this type cannot be considered until a clear stance emerges."

This abrupt denial placed Jetking in an awkward position—capital had already been raised and partially deployed into crypto assets under the impression of regulatory support, but the company’s listing aspirations were suddenly stalled.

Investor Confidence Shaken

The BSE’s denial has not only raised regulatory questions but also rattled investor sentiment. Jetking Infotrain’s stock has seen a sharp decline over the past trading sessions. From a price of ₹268.40 on September 23, shares dropped nearly 10 percent to ₹241.65 by September 26. The fall represented a loss of ₹26.75 in just five days, wiping out recent gains.

The company has signaled it may pursue legal remedies, including an appeal to the Securities Appellate Tribunal (SAT), in an attempt to reverse the BSE’s decision. However, analysts suggest that the outcome may depend less on legal strategy and more on the government’s evolving stance toward corporate cryptocurrency exposure.

India’s Policy Vacuum on Corporate Crypto Holdings

At the heart of this episode lies a broader policy dilemma: Should Indian companies be allowed to hold cryptocurrencies as part of their corporate treasuries? Around the world, high-profile companies such as Tesla, MicroStrategy, and Square have made headlines by holding billions of dollars in Bitcoin on their balance sheets. Advocates argue that such investments diversify risk and protect against inflation.

Source: Google Finance

India, however, appears to be taking a far more cautious approach. While the country has topped global charts in retail crypto adoption—with millions of individual investors trading tokens through domestic exchanges—the official position toward corporate use of crypto remains murky. The BSE’s rejection of Jetking’s application underscores this hesitation, signaling that regulators are not yet ready to legitimize corporate digital asset holdings.

Why Regulators Are Wary

Several factors explain India’s cautious stance.

1. Regulatory uncertainty: India has yet to pass comprehensive cryptocurrency legislation. While the government has introduced a tax regime for digital assets, clarity on whether companies can hold crypto as a treasury asset remains absent.

2. Market volatility: Cryptocurrencies are highly volatile, often experiencing price swings of 10–20 percent within hours. Regulators fear that allowing listed firms to hold such assets could expose retail investors to unpredictable risks.

3. Past scandals: India’s crypto landscape has been marred by high-profile controversies, including the Raj Kundra Bitcoin scam and multiple exchange hacks affecting platforms such as WazirX and CoinDCX. These incidents have heightened concerns over security and investor protection.

4. Systemic risk: The Reserve Bank of India (RBI) has consistently warned that unregulated crypto exposure could pose risks to financial stability, particularly if mainstream corporations begin holding digital assets in significant amounts.

Balancing Adoption With Control

What makes India’s stance paradoxical is its dual approach to cryptocurrency. On one hand, the country has embraced digital innovation and celebrated its ranking as the world’s leading market for retail crypto adoption. On the other hand, regulators remain reluctant to allow corporate entities to follow global peers in treating Bitcoin and other digital assets as treasury assets.

Experts argue this contradiction highlights a gap between consumer-level adoption and institutional acceptance. Retail investors continue to flock to exchanges, but listed companies remain blocked from leveraging digital assets in a manner similar to Tesla or MicroStrategy.

Global Comparisons

India’s hesitation contrasts sharply with developments in other markets. In the United States, despite ongoing debates with the Securities and Exchange Commission (SEC), major corporations have integrated crypto holdings into their financial strategies. In Japan, regulators have provided clearer frameworks for corporate crypto exposure, allowing firms to explore blockchain-driven diversification. Even in emerging economies such as El Salvador, where Bitcoin has been adopted as legal tender, companies are encouraged to integrate crypto into their balance sheets.

The BSE’s denial, therefore, not only impacts Jetking Infotrain but also sends a broader message: Indian firms may face barriers to innovation if regulatory clarity does not arrive soon.

The Road Ahead for Jetking and India’s Crypto Landscape

Jetking Infotrain’s immediate challenge is whether it can secure approval for its listing through appeal or by restructuring its treasury strategy. Some analysts believe the company may be forced to liquidate its crypto holdings in order to align with BSE’s expectations, effectively undoing its initial diversification plan.

For India, the episode underscores the urgent need for a comprehensive framework governing corporate crypto exposure. Without clear guidelines, companies may remain in limbo, unable to adopt global best practices or tap into the potential benefits of digital assets.

Industry voices are calling for regulators to distinguish between speculative trading and strategic treasury diversification. Advocates argue that while excessive exposure to volatile assets may indeed pose risks, limited allocations under strict disclosure requirements could allow firms to responsibly integrate crypto into their balance sheets.

Conclusion

The BSE’s decision to reject Jetking Infotrain’s listing serves as a stark reminder of India’s reluctance toward corporate cryptocurrency adoption. While millions of Indian retail investors trade tokens daily, the country’s listed companies remain restricted from exploring digital asset treasuries.

Until India introduces a clear regulatory stance, public firms may have to place such ambitions on hold. For now, the gap between global corporate adoption and India’s cautious approach remains wide—and the future of crypto treasuries in the country hangs in uncertainty.

Writer @Erlin

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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