SAT Upholds BSE's Rejection of Jetking Infotrain's Listing Application
The Securities Appellate Tribunal (SAT) has upheld the Bombay Stock Exchange’s (BSE) decision to reject the listing of preferential shares issued by Jetking Infotrain. The tribunal ruled that the company acted ultra vires by investing proceeds from the share issue into virtual digital assets (VDAs) before receiving necessary regulatory approvals. Although shareholders approved amendments to the Memorandum of Association (MoA) in September 2024 to allow VDA investments, the Registrar of Companies (RoC) did not certify the final amendment until July 2025. Jetking had raised funds and invested them via the CoinDCX platform in May 2025, prior to this certification. BSE argued that the initial amendment only permitted investing surplus funds, not raising capital specifically for VDA dealings, which remain speculative and under regulatory review. The tribunal dismissed Jetking’s appeal, affirming that all actions taken before the RoC’s final approval were invalid. This case highlights strict compliance requirements for companies engaging in emerging asset classes like cryptocurrencies and NFTs, emphasizing the need for proper legal authorization before deploying raised capital into such ventures.
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SAT Upholds BSE's Rejection of Jetking Infotrain's Listing Application
The Securities Appellate Tribunal (SAT) has upheld the Bombay Stock Exchange’s (BSE) decision to reject the listing of preferential shares issued by Jetking Infotrain. The tribunal ruled that the company acted ultra vires by investing proceeds from the share issue into virtual digital assets (VDAs) before receiving necessary regulatory approvals. Although shareholders approved amendments to the Memorandum of Association (MoA) in September 2024 to allow VDA investments, the Registrar of Companies (RoC) did not certify the final amendment until July 2025. Jetking had raised funds and invested them via the CoinDCX platform in May 2025, prior to this certification. BSE argued that the initial amendment only permitted investing surplus funds, not raising capital specifically for VDA dealings, which remain speculative and under regulatory review. The tribunal dismissed Jetking’s appeal, affirming that all actions taken before the RoC’s final approval were invalid. This case highlights strict compliance requirements for companies engaging in emerging asset classes like cryptocurrencies and NFTs, emphasizing the need for proper legal authorization before deploying raised capital into such ventures.
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