SEBI chair warns mutual funds on investing in cryptocurrency offerings

The Chairman of the Securities and Exchange Board of India (SEBI), Ajay Tyagi, urged mutual funds to avoid investing in crypto-related assets in India.

SEBI chair warns mutual funds on investing in cryptocurrency offerings


While the administrative environment for cryptocurrencies in India is presently murky, the nation has already witnessed an exponential rise in crypto popularity.

The Chairman of the Securities and Exchange Board of India (SEBI), Ajay Tyagi, asked mutual funds to avoid investing in crypto-related resources as the government considers new cryptocurrency rules. Talking at a press conference on Tuesday, Tyagi advised firms to refrain from investing in funds linked to crypto assets until there is clarity on the policy and regulatory framework.

“Those who have invested in mutual funds, — in companies related to crypto-assets or foreign firms through fund-of-funds (FOF) — my thinking is that till we get clarity on its (crypto's) policy, businesses should not make such investments,” said the SEBI chairman.

While the regulatory environment for cryptocurrency in India is presently murky, the nation has already outstanding an exponential rise in its popularity. it's also unclear if the crypto investment comes with any tax obligations in the country.

Tyagi's comments come following the recent event involving an asset management firm (AMC), Invesco Mutual Fund. In spite of Sebi's approval, it delayed its blockchain fund last month owing to administrative uncertainty.

There have been discussions about cryptocurrency being talked about in Parliament during the winter session recently. The talks gained further momentum following a parliamentary standing committee on finance's gathering with cryptocurrency stakeholders to identify possible opportunities and challenges that might happen with regard to crypto financing and investment.

The Indian government had officially planned to introduce the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, for discussion in the parliament during its current winter session. The bill, however, doesn't show up among the bills that India's lower house will consider as it concludes the winter session.

Meanwhile, Indian Prime Minister Narendra Modi has been progressively vocal regarding cryptocurrencies in 2021. during the recent Sydney Dialogue, Modi asked democratic countries to collaborate in order to make the most of cryptocurrencies and blockchain technology. He also warned against their malicious use.

In the interim, Indian Prime Minister Modi has been progressively vocal with respect to digital forms of money in 2021. During the new Sydney Dialog, Modi asked majority rule countries to work together to capitalize on digital forms of money and blockchain innovation. He additionally cautioned against their malevolent use.

Read: India to introduce new Crypto Bill in Parliament after Cabinet approval