Exchange Rejects $720,000 Public Offering
The Bombay Stock Exchange has delivered a decisive blow to Jetking Infotrain’s public listing ambitions, rejecting the IT training company’s application due to its substantial cryptocurrency investment plans. The rejection marks a significant policy statement from Asia’s oldest stock exchange regarding the use of publicly raised capital for digital asset purchases.
Jetking initially received in-principle approval on May 9, 2025, to raise over ₹6 crore ($720,000) through the issuance of 396,000+ shares. However, the company’s board decision to allocate a substantial ₹3.96 crore ($475,000) – representing 60% of the total funds – toward virtual digital assets ultimately triggered the exchange’s rejection.
Policy Concerns Over Public Fund Usage
The BSE’s decision reflects growing scrutiny over how publicly listed companies utilize investor funds, particularly regarding volatile digital assets. While Jetking stated the remaining 40% would support general corporate purposes and education initiatives, the overwhelming allocation toward cryptocurrency investments raised red flags for regulators.
A BSE spokesperson clarified the exchange’s position, stating that while the application was initially processed under existing norms, final approval was withheld pending regulatory consultation. The subsequent policy revision led to the application’s outright rejection, establishing a precedent for similar future cases.
Impact on India’s Crypto Treasury Landscape
The rejection threatens the emergence of crypto treasury companies in India’s capital markets. These firms, exemplified by Strategy in the United States and Next Technology Holding in China, leverage their public status to access traditional funding mechanisms before deploying capital into digital assets.
Currently, Indian companies maintain the legal right to hold cryptocurrencies as balance sheet assets, similar to mutual funds or securities. However, the BSE’s stance suggests a clear distinction between existing holdings and actively raising public funds specifically for crypto acquisition purposes.
Legal Challenge Looms
Jetking Co-Managing Director and CFO Siddharth Bharwani has indicated the company is exploring all available options, including a potential appeal to the Securities Appellate Tribunal. The company’s response could set important legal precedents for cryptocurrency-related business activities in India’s public markets.
The regulatory landscape remains complex, as cryptocurrencies occupy a unique position in India – neither illegal investments nor recognized legal tender, but classified as intangible assets. This ambiguous status continues to create challenges for companies seeking to integrate digital assets into their corporate strategies.
Market Implications
The BSE’s decision signals increased regulatory scrutiny of crypto-related corporate activities in India’s second-largest stock exchange by trading volume. As the broader cryptocurrency market continues evolving, traditional financial institutions appear increasingly cautious about facilitating direct public investment in digital assets through conventional capital markets.