The Bombay Stock Exchange (BSE), one of Asia's oldest and India's second-largest exchange by trading volume, has reportedly rejected the public listing application of Jetking Infotrain, an IT training company. This pivotal decision stems from Jetking's stated intention to use a significant portion of the capital raised through public listing for investments in virtual digital assets (VDAs), specifically cryptocurrencies. This event marks a crucial development in India's evolving regulatory stance on digital assets, particularly concerning their integration with traditional capital markets.
Jetking Infotrain had initially received an in-principle approval from the BSE on May 9, 2025, to proceed with its plan to raise funds via a share issue. Subsequently, 14 days later, the company's board sanctioned the issuance of over 396,000 shares, aiming to raise more than ₹6 crore, equivalent to approximately $720,000. In its application to the BSE, Jetking outlined that the new capital would be allocated across general corporate uses, education and skill development initiatives, and crucially, investments in virtual digital assets. However, the proposed allocation of a substantial ₹3.96 crore ($475,000)—roughly 60% of the total funds—towards crypto investments became the central point of contention.
BSE's Stance: Public Capital and Crypto Investments
While Indian companies are permitted to invest in cryptocurrencies using their existing funds, treating them similarly to mutual funds or other securities, the Bombay Stock Exchange has drawn a clear line regarding the source of capital for such investments. The BSE's rejection underscores a strong policy stance against leveraging publicly raised capital specifically for venturing into virtual digital assets. This distinction is critical: owning crypto assets is acceptable under current Indian regulations for companies, but raising fresh public money with the explicit primary purpose of investing it into a highly volatile and largely unregulated asset class like crypto is not.
A spokesperson for the BSE elaborated on the decision-making process, stating, "We had processed the application in the normal course as per extant norms. Final approval was kept on hold to take up the issue of fund raise for investment in VDA at the policy level with the Regulator. Subsequently, as per the revised norms, a decision was taken to reject the application." This statement confirms that the exchange undertook a thorough review and, following policy-level consultations and revisions, determined that Jetking's proposed use of public capital for crypto investments did not align with its updated guidelines.
Implications for India's Crypto Treasury Landscape
The BSE's ruling carries significant implications for the nascent ecosystem of crypto treasury companies within India. Globally, firms like MicroStrategy in the US and Next Technology Holding in China have successfully adopted a model where they leverage their status as publicly listed entities to access capital markets. They raise funds through equity or debt offerings and subsequently deploy these funds into digital assets, primarily Bitcoin. Such a model allows them to benefit from the potential appreciation of cryptocurrencies and offer a unique investment proposition to their shareholders.
However, the BSE's decision creates a substantial hurdle for the replication of this model in India. It signals that Indian stock exchanges are currently unwilling to facilitate public listings for companies whose primary objective for raising capital is to invest in virtual digital assets. This could effectively stifle the growth of dedicated crypto treasury companies within the Indian public market space, forcing them to explore alternative funding mechanisms or operate within different regulatory frameworks.
Jetking Considers Appeal Amidst Regulatory Ambiguity
Following this unexpected rejection, Siddharth Bharwani, Jetking Co-Managing Director and Chief Financial Officer, has indicated that the company is exploring all available options to respond to the BSE's decision. This includes the possibility of filing an appeal with the Securities Appellate Tribunal, a body that hears and disposes of appeals against orders passed by regulatory authorities like the Securities and Exchange Board of India (SEBI) and, by extension, stock exchanges.
This potential appeal highlights the ongoing regulatory ambiguity surrounding cryptocurrencies in India. It is noteworthy that cryptocurrencies are not considered illegal investments in the country. Instead, they are classified as intangible assets, explicitly distinguished from traditional securities or legal tender. This classification, while permitting individual and corporate ownership, does not automatically grant them the same standing in capital market fundraising as conventional assets. The outcome of Jetking's potential appeal could further clarify the regulatory boundaries and establish important precedents for future interactions between India's traditional financial markets and the burgeoning world of digital assets.
The BSE's definitive stance underscores a cautious approach towards integrating the volatile and evolving digital asset market into conventional public market fundraising. This decision reflects a broader global debate among regulators on how to safeguard public investors while fostering innovation in the digital economy.
