The Securities and Exchange Board of India (SEBI) issued a public caution on dealing in “Digital Gold/E-Gold” products offered on digital and online platforms, warning that these products operate outside SEBI’s regulatory purview and do not benefit from securities-market investor protection mechanisms. SEBI highlighted that it enables gold investment through SEBI-regulated products, including exchange-traded commodity derivative contracts, Gold Exchange Traded Funds (ETFs) offered by mutual funds, and Electronic Gold Receipts (EGRs) tradable on stock exchanges, which can be accessed via SEBI-registered intermediaries. By contrast, digital gold products are neither notified as securities nor regulated as commodity derivatives, and may expose investors to significant counterparty and operational risks.
Securities & Exchange Board of India 2025-11-08
Securities and Exchange Board of India cautions investors that digital gold platforms are outside SEBI regulation
The Securities and Exchange Board of India (SEBI) cautioned against investing in "Digital Gold/E-Gold" on digital platforms, as they lack SEBI's regulatory oversight and securities-market protections. SEBI advised investing through SEBI-regulated products like exchange-traded commodity derivative contracts, Gold Exchange Traded Funds (ETFs), and Electronic Gold Receipts (EGRs). Digital gold products are not classified as securities or regulated commodity derivatives, posing potential counterparty and operational risks.