The government of India doesn't have any clear understanding about Bitcoin. They still consider it as a mode to carry on illegal activities. That is why they will never allow SEBI to come up with something similar to Bitcoin ETF. I don't think Bitcoin will be ever traded in the Indian stock market.
The government has a very clear understanding of Bitcoin. That's the exact reason why they will never allow Bitcoin to flourish in this country. Long back, I had mentioned once, that it is good till the time government doesn't notice Bitcoin because the moment they start noticing, the freedom will be gone!
Indian government understands everything. They very clearly understand the fact, that they can't control it. In a diverse country like India which lives under a constant threat of terrorism and also shared border with two enemies, will never allow such parallel currencies to flow freely in the economy. They will always see it as a risk.
let me tell you, the stance of Indian government won't change towards crypto even if the government changes any day in future.