Jetking’s Bitcoin Dreams Dashed: SAT Ruling Leaves Shares in Limbo

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India’s <a href="https://jpygbp.com/btc-usd/">Bitcoin</a> Treasury Company Jetking Faces Legal Limbo After SAT Ruling

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Jetking Infotrain Ltd faces uncertainty as the SAT upholds BSE’s refusal to list shares from a 2025 allotment, leaving the shares in limbo.
The company’s plans to invest in Bitcoin and blockchain initiatives are stalled due to regulatory issues, potentially impacting its future business strategy.
The outcome may set a precedent for other Indian companies considering investments in virtual digital assets, influencing their approach to regulatory compliance.

Jetking Infotrain Ltd., the first Indian company publicly traded on the stock market to invest in Bitcoin as a main part of its finances, has suffered a significant legal defeat. The ruling came from the Securities Appellate Tribunal (SAT), a specialized Indian court dealing with securities-related cases.

The dispute centers on a relatively small fundraising effort with significant implications. In April 2025, Jetking’s board authorized the sale of approximately 396,000 shares at ₹154 apiece, aiming to generate around ₹6.1 crore.

The company intended to invest the majority of its funds in Bitcoin and other blockchain projects. They received initial approval on May 9th, and when the money arrived in late May, they quickly transferred it – along with existing funds – to CoinDCX to buy Bitcoin. The company had already started building a small Bitcoin holding and had announced Bitcoin as its main reserve asset.

However, the company’s official founding documents revealed a different timeline. An update in late 2024 had already permitted the company to invest excess funds in virtual digital assets as a secondary activity. The key change – making investments in virtual digital assets, blockchain technology, and decentralized finance core to the business – wasn’t officially approved until July 7, 2025.

BSE determined that the funds raised and the quick investment in Bitcoin exceeded the company’s legal authority at that time. On September 23, 2025, the exchange rejected Jetking’s appeal regarding the listing application.

Timeline of the Preferential Allotment Dispute

This disagreement illustrates a common conflict between a company’s desire to grow and the need for careful oversight. Jetking maintained that the initial change to their agreement was sufficient and that the second change simply clarified existing points.

Ravi Kadam, a senior lawyer representing the company, argued to the judge, Justice P.S. Dinesh Kumar, that minor technical issues shouldn’t prevent a fundraising effort that otherwise meets all the requirements.

The Securities Appellate Tribunal (SAT) disagreed with the appeal, clearly distinguishing between investments made with existing funds and a deliberate effort to raise capital for a new venture. The tribunal observed that the funds from the preferential issue were invested before the company changed its stated business goals. Because all these actions happened before July 2025, they weren’t covered by the company’s original founding document. Consequently, the tribunal upheld the Bombay Stock Exchange’s (BSE) decision and rejected the appeal.

Jetking informed the stock exchange the following day, as legally obligated. The company stated it was assessing the financial and legal consequences of the ruling and exploring options, which could include appealing to the Supreme Court.

Market and Strategic Fallout for Jetking

While the initial effects seem limited, they’re significant. These unlisted shares create new ownership without a way to trade them, which weakens the value of existing shares and prevents current shareholders from easily selling.

Jetking’s main business of providing IT training continues as usual, with revenue reaching ₹4.67 crore in the last quarter of March 2026, although operating losses increased. The company also still holds Bitcoin worth approximately ₹1.7 million (21 BTC), which is listed on its financial statements.

The company’s stock, once popular with small investors due to its investment in Bitcoin, has become more unstable since the recent order. Trading volume has been low, and the price has fluctuated within a small range, indicating concerns about the company’s ability to raise more money in the future.

On May 7th, the stock finished the day at around ₹121.15. Over the next week, it consistently decreased in value, closing at ₹119.75 on May 8th, ₹118.55 on May 11th, ₹112.90 on May 12th, ₹107.60 on May 13th, and finally at ₹102.25 on May 14th – a drop of almost 5% in a single day. In total, the stock fell by about 15.6% during this time, with relatively low trading activity.

The Mumbai-based company, which has been around for 77 years and previously focused on training hardware engineers, didn’t get into Bitcoin for a quick profit. According to Joint Managing Director Siddarth Bharwani, the company sees Bitcoin as a long-term investment to protect against the declining value of the Indian rupee and rising prices, and they plan to significantly increase their Bitcoin holdings over time.

The recent SEC ruling on Grayscale doesn’t eliminate existing Bitcoin, but it does make fundraising for crypto projects more difficult. Future funding efforts will likely be subject to increased oversight regarding when they happen, what information they share, and how well they comply with legal requirements.

This decision comes at a crucial time for businesses in India exploring cryptocurrency. Regulators have generally allowed individuals to trade crypto, but when companies use their own funds to invest in these often unpredictable digital assets, it raises concerns about risky behavior and protecting investors.

Jetking’s situation could serve as a warning to others, or it could become an example of how much flexibility Indian educational boards can truly offer. It all depends on what Jetking does next.

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2026-05-14 16:59