In what seems to be some other anti-crypto movement by regulators in India, initial public offering promoters may soon exist forced to sell their crypto holdings before being allowed to participate in raising funds.

According to a report by the Economical Times, the Securities Board of India may disqualify IPO promoters from raising funds if they hold cryptocurrencies.

This movement is reportedly an extension of SEBI'south instructions to securities lawyers, merchant banks and other stakeholders in the IPO ecosystem regarding cryptocurrencies.

According to a securities lawyer quoted past the Economic Times, "At that place could be a management from the government in this regard. The market regulator seems to think that this could go a risk for investors if a promoter holds an asset that is illegal in the country."

Every bit previously reported by Cointelegraph, speculation is rife in Republic of india that a blanket crypto ban is imminent. According to people with inside knowledge of ongoing deliberations in the land's parliament, cryptocurrency holders will exist given iii to six months to liquidate their digital currency holdings one time the ban comes into effect.

Earlier in February, reports too emerged that Bharat's parliament was looking to fast-rail the crypto bill.

Fifty-fifty if the ban does non come up into effect, some investment bankers say SEBI may even so prohibit IPO promoters from owning crypto. Speaking to the Economic Times, Mahesh Singhi of investment banking firm Singhi Advisors said that SEBI is afraid of a situation where IPO promoters divert funds raised from public sales to speculative investments.

For now, some IPO promoters have already come upward with a temporary solution in the form of an affirmation stating that they will liquidate all cryptocurrency holdings in 24 hours if the rumored ban comes into effect.

India'southward crypto market has suffered the brunt of unfavorable regulations by government agencies for years. Back in March 2020, the Supreme Court of Bharat overturned a central bank ban on banks servicing cryptocurrency exchanges in the country.

Among fresh reports of a full crypto ban, former Coinbase main technology officer Balaji Srinivasan has said that such a motility would exist akin to banning the net.