Cryptocurrency: Promoters may have to sell before going public
Although SEBI has not issued any written order in this regard, it has reportedly asked the concerned authorities to not allow any promoter to hold the cryptocurrency that is not issued by the state
The Securities Exchange Board of India (SEBI) has asked merchant bankers and securities lawyers to assure that no promoter holds cryptocurrency before raising funds in the IPO market, reports The Economic Times.
Since the government is planning to bring a law banning cryptocurrency, SEBI is concerned that no promoter should buy illegal assets from money raised through IPOs.
Although SEBI has not issued any written order in this regard, it has reportedly asked the concerned authorities to not allow any promoter to hold the cryptocurrency that is not issued by the state.
Sources told the publication that this order by SEBI might be because of the strong possibility of the government banning cryptocurrency due to which investors may be at risk if a promoter holds illegal assets in the country.
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