The Chairman of the Securities and Exchange Board of India (SEBI), Ajay Tyagi, urged mutual funds to avoid investing in crypto-related assets, as the government is studying new rules for cryptocurrency. . At a press conference on Tuesday, Tyagi advised companies to refrain from investing in crypto-asset-linked funds until there is clarity on the policy and regulatory framework.
“Those who have invested in mutual funds, – in companies related to crypto assets or in foreign firms through funds of funds (FOF) – my opinion is that until we are clear about their policy (that of cryptocurrencies), companies they should not make such investments, “said the SEBI president.
Although the regulatory environment for cryptocurrencies in India is currently murky, the country has already witnessed an exponential rise in popularity. It is also not entirely clear if investments in cryptocurrencies carry any fiscal obligation in the country.
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Tyagi’s remarks come in the wake of the recent event that affected an asset management company (AMC (NYSE :)), Invesco Mutual Fund. Despite Sebi’s approval, it delayed its blockchain fund last month due to legislative uncertainty.
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