Indian securities and commodity market regulator SEBI wants mutual funds to maintain distancing from Crypto Investments until the legal bill
The discussion on the cryptocurrency bill was to be done in this Parliament winter session, but later the governor did not bring the crypto bill to the table and said, we should make new haste now.
In the last month, Invesco Mutual Fund has already delayed the launch of the cryptocurrency-based exchange-traded fund and the applications for the upcoming new mutual fund are yet to be approved by SEBI.
According to Ajay Tyagi, chairman of The Securities and Exchange Board of India, mutual funds should not make this type of investment unless there is a law to regulate the industry.
“It is prudent for regulated entities with public markets exposure or focus, or any form of public solicitation, to wait for additional clarity regarding the legality or definition of digital assets as assets or securities or commodities in India,” Nitin Sharma, partner at Antler India and blockchain told Business Insider.
Market analysts say that keeping in mind the increasing demand for digital assets, the mutual fund company is fully prepared to invest in digital currency sectors. Only the company is waiting for the permission of the government. If the mutual company enters this digital industry, then there will be a new crypto journey for the mutual industry.
About the SEBI:
The term SEBI stands for Securities and Exchange Board of India (SEBI). This organization was formed on 12th April 1988. SEBI is the regulatory body that regulates the securities and commodity market which comes under the Ministry of Finance, Government of India.
CBW - External Analyst