BSE Blocks Jetking’s Crypto-Focussed Share Listing Due to Speculation Risks

In a landmark decision, the Bombay Stock Exchange (BSE) recently rejected Jetking Infotrain's application to list shares from its preferential issue, after the IT training firm disclosed that 60 percent of the proceeds would go into virtual digital assets, mainly Bitcoin. This announcement marks the first outright denial of a listing tied to crypto treasury plans in India. Jetking aimed to raise over Rs. 6 crore through Rs. 4 lakh shares, priced at Rs. 154 each. On September 24, the company had already allotted shares and partially deployed funds into Bitcoin before the rejection, triggering a nearly 10 percent stock drop to Rs. 241.65.  

BSE Cites “Speculative Nature” of Proposed Crypto Allocation While Returning Application

The BSE cited the speculative nature of investing public funds in digital assets as the key reason for rejection. While retail crypto adoption continues to rise, regulatory bodies remain cautious about exposing investors to volatile assets through public fundraising. The decision sets a precedent for other companies considering IPOs tied to virtual digital assets, signalling that regulatory clarity and adherence to existing compliance norms are essential before pursuing such strategies.     

Jetking JMD and CFO Siddharth Bharwani called the decision “unprecedented” on Monday. “We got a shareholder approval, we got 100 percent approval at the board level, and then we filed for an application for in-principle approval with the Bombay Stock Exchange to raise capital for virtual digital assets. That was also approved [...] After a 90-day limbo, conversation limbo, they went ahead and rejected the listing of the shares that we have already issued, which is unprecedented before. It's never been done before, for this segment,” Bharwani told Gadgets 360.

We reached out to the BSE for a comment, and the copy will be updated once a response is received. 

It's clear that Jetking's rejection has sparked discussions on how corporate crypto strategies are treated under India's regulatory framework. Companies looking to integrate VDAs in public offerings must now carefully navigate this uncertain landscape to avoid similar setbacks.     

Subha Chugh, a Web3 lawyer, highlighted the policy gap that led to the Jetking rejection:
"On the one hand, you have no clarity on what is allowed and what is not allowed. There is no permission. But on the other hand, because you have such a limited scope, you can just keep functioning in a limited capacity. The first thing we need to do is to ensure consumer protection. Build something that protects retail investors, allows the industry to mature, and then come up with tiered regulations [...] A crypto utility token versus an RWA asset token versus an NFT, all of them need to be regulated separately."

Jetking says it will appeal to the Securities Appellate Tribunal (SAT) as it works towards clarifying its position. Meanwhile, the BSE's rejection sends a clear signal to companies considering public fundraising for virtual digital assets: regulatory caution remains high, and transparency in crypto-related strategies is essential for compliance. The case highlights the evolving interplay between corporate ambitions and India's emerging crypto regulations.