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Mutual funds in India have been warned against investing in cryptocurrency

bitcoinworld.co.in 29 December 2021 06:31, UTC
Reading time: ~2 m

The Securities and Exchange Board of India (SEBI), India’s top security regulator, urges mutual funds against investing in crypto assets until clear regulations comes in.
Ajay Tyagi, the head of the SEBI group, addressed the topic in a news conference, saying it wouldn’t be ideal for mutual fundz to invest public money in crypto without the government’s legal framework. Because mutual funds are one of the most popular types of investing for the majority of Indian households, they must avoid crypto investments if they seek NFO (new fund offer) permission from the regulator.

Despite the lack of regulations, crypto investments are not illegal in India. Individuals and businesses can invest in and trade crypto assets. SEBI, on the other hand, believes that because there is no clarity on tax brackets. Also, and no clear indication from the government, enterprises should avoid offering crypto-themed investment alternatives.

Invesco Mutual Fund is the first asset management business in India to receive SEBI clearance. Inorder, to launch the Invesco CoinShares Global Blockchain ETF Fund of Funds, a blockchain fund (FoF). It offers exposure to worldwide crypto and blockchain startups.

But, due to regulatory uncertainties, its launch was postponed even after it was approved.

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