SEBI Issues Warning On Digital Gold Investment Risks
The Securities and Exchange Board of India (SEBI) has issued a strong warning to investors about the rising trend of buying “Digital Gold” and “E-Gold Products” through unregulated online platforms. The market regulator has clarified that these offerings do not fall under its supervision and can pose major financial risks.
In its latest press release (PR No. 70/2025), SEBI reminded the public that safe and regulated options for gold investing are already available. These include Gold Exchange Traded Funds (ETFs) offered by mutual funds, Electronic Gold Receipts (EGRs) traded on the stock exchanges, and Exchange-Traded Commodity Derivative Contracts — all accessible only via SEBI-registered intermediaries.
However, several digital platforms are aggressively selling unapproved gold investment products by advertising them as alternatives to physical gold. SEBI clarified that such products are not defined as securities, and are not regulated as commodity derivatives, meaning they function completely outside SEBI’s purview.
This lack of regulation exposes investors to high counterparty risks, operational fraud, and zero accountability. SEBI also stated that no investor protection or grievance redressal mechanisms apply to these unregulated schemes — leaving investors completely vulnerable.
How To Invest Safely in Gold
To ensure safety and regulatory protection, SEBI urges investors to stick to:
For anyone still considering private digital gold platforms, SEBI recommends verifying whether the company:
In unregulated markets, the entire responsibility of due diligence lies with the investor alone.
Disclaimer: The views, expert opinions, and recommendations in this article are theirs alone and do not reflect NewsPoint’s stance. Always consult a SEBI-registered financial advisor before making any investment decisions.
In its latest press release (PR No. 70/2025), SEBI reminded the public that safe and regulated options for gold investing are already available. These include Gold Exchange Traded Funds (ETFs) offered by mutual funds, Electronic Gold Receipts (EGRs) traded on the stock exchanges, and Exchange-Traded Commodity Derivative Contracts — all accessible only via SEBI-registered intermediaries.
However, several digital platforms are aggressively selling unapproved gold investment products by advertising them as alternatives to physical gold. SEBI clarified that such products are not defined as securities, and are not regulated as commodity derivatives, meaning they function completely outside SEBI’s purview.
This lack of regulation exposes investors to high counterparty risks, operational fraud, and zero accountability. SEBI also stated that no investor protection or grievance redressal mechanisms apply to these unregulated schemes — leaving investors completely vulnerable.
How To Invest Safely in Gold
To ensure safety and regulatory protection, SEBI urges investors to stick to:
- Gold ETFs
- Electronic Gold Receipts (EGRs)
- Other SEBI-regulated gold investment products
For anyone still considering private digital gold platforms, SEBI recommends verifying whether the company:
- Falls under SEBI regulation
- Offers SEBI-approved products
- Maintains actual gold backing with audit
- Provides transparent storage and security details
In unregulated markets, the entire responsibility of due diligence lies with the investor alone.
Disclaimer: The views, expert opinions, and recommendations in this article are theirs alone and do not reflect NewsPoint’s stance. Always consult a SEBI-registered financial advisor before making any investment decisions.
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