Capital markets regulator SEBI has cautioned investors on digital gold products offered by many unregulated entities as an alternate to physical gold.
It has come to the notice of SEBI that some digital/online platforms are offering ‘Digital Gold/E-Gold Products’. It is being marketed as an alternative for investment in physical gold, said SEBI.
Digital gold products are different from SEBI-regulated gold products as they are neither notified as securities nor regulated as commodity derivatives. They operate entirely outside the purview of SEBI. Such digital gold products may entail significant risks for investors and may expose investors to counterparty and operational risks, it said.
The capital markets regulator emphasised that none of the investor protection mechanisms under securities market purview will be available for investments in such Digital Gold/EGold products
SEBI has enabled investments in gold and gold-related instruments through exchange traded commodity derivative contracts, Gold Exchange Traded Funds (ETFs) offered by Mutual Funds and Electronic Gold Receipts tradeable on stock exchanges.
Investments in these SEBI-regulated gold products can be made through SEBI registered intermediaries and are governed by the regulatory framework prescribed by SEBI, it added.
Published on November 8, 2025
