The Securities and Exchange Board of India (SEBI) has reportedly instructed mutual fund companies not to get involved or invest in any type of investment based on crypto assets until the Indian government has issued a point of legislation on cryptocurrency.
SEBI asks mutual fund companies to wait for crypto legislation
Securities and Exchange Board of India (SEBI) Chairman Ajay Tyagi reportedly said on Tuesday that the market regulator does not want mutual fund companies to get involved or invest in any kind of new fund offerings ( NFO) based on crypto assets until the Indian government came up with cryptocurrency legislation.
There is currently no law governing cryptocurrencies directly in India. However, the Indian government is actively working on cryptocurrency legislation. A crypto bill was listed for consideration in the winter session of Parliament, but it was not passed. The government is said to be reworking the bill.
Indian asset management firm Invesco Mutual Fund delayed the launch of its fund of funds Invesco Coinshares Global Blockchain ETF last month due to regulatory uncertainty surrounding crypto assets, even though it was approved by SEBI . The fund is a variable capital program that invests in the Invesco Coinshares Global Blockchain UCITS ETF. It is the first fund in India exposed to the blockchain ecosystem to receive approval from SEBI.
The underlying fund’s portfolio as of November 2 includes Coinbase Global, GMO Internet, Kakao Corp. SBI Holdings, Hive Blockchain Technologies, Bitfarms, Bit Digital and Microstrategy.
Although the Indian government has not officially announced whether it will ban or regulate cryptocurrencies, it has been reported that crypto assets will be regulated with SEBI as the main regulator.
Meanwhile, India’s central bank, the Reserve Bank of India (RBI), has called on the government to ban cryptocurrency altogether, noting that a partial ban would not work. RBI Governor Shaktikanta Das said the central bank has serious and overriding concerns about cryptocurrencies.
What do you think about SEBI asking mutual fund companies not to invest in any type of fund based on crypto assets until the legislation is in place? Let us know in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
Warning: This article is for informational purposes only. This is not a direct offer or the solicitation of an offer to buy or sell, nor a recommendation or endorsement of any product, service or business. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, good or service mentioned in this article.