On 8-11-2025, the Securities and Exchange Board of India (‘SEBI’) issued a public advisory warning investors about the risks of investing in Digital Gold or E-Gold products offered by online platforms.
Key Advisory:
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SEBI warns investors against engaging with unregulated ‘Digital Gold’ or ‘E-Gold’ products offered by certain online platforms. These offerings operate outside SEBI’s regulatory framework and pose significant risks to retail investors.
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SEBI clarified that it has enabled gold investments through SEBI-registered intermediaries using regulated instruments such as:
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Gold Exchange Traded Funds (ETFs) offered by mutual funds
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Exchange-traded commodity derivative contracts
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Electronic Gold Receipts (EGRs)
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Digital Gold products marketed online differ from SEBI-regulated gold instruments. They are not classified as securities or regulated commodity derivatives and therefore fall outside SEBI’s jurisdiction. These options can expose investors to counterparty risks, operational vulnerabilities, and lack of transparency.
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SEBI cautions that investor protection mechanisms under the securities market framework do not apply to unregulated Digital Gold investments.
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Investors are reminded to rely on SEBI-regulated channels for gold investments and avoid platforms lacking regulatory safeguards. They are urged to exercise caution and verify the regulatory status of any gold-related product before investing.