SEBI Issues Public Caution on Digital Gold
The Securities and Exchange Board of India (SEBI) has cautioned investors about dealing in ‘Digital Gold’ or ‘E-Gold Products’ being offered by several online platforms. In its press release dated November 8, 2025, SEBI clarified that these digital gold products are not regulated under its framework and fall outside SEBI’s jurisdiction.
What SEBI-Regulated Gold Products Include
SEBI allows investments in gold through its regulated instruments such as:
Gold Exchange Traded Funds (ETFs) offered by Mutual Funds
Exchange Traded Commodity Derivative Contracts
Electronic Gold Receipts (EGRs) traded on stock exchanges
These products can only be purchased through SEBI-registered intermediaries and are fully covered by SEBI’s investor protection framework.
Digital Gold: Not a SEBI-Regulated Investment
SEBI has observed that many digital or online platforms are promoting “Digital Gold” as an alternative to physical gold. However, SEBI confirmed that these products are not recognized as securities or commodity derivatives. Hence, they are not monitored or protected under SEBI’s regulations.
Investing in such products may carry high risks such as counterparty and operational risks. In case of disputes, investors will not be protected by SEBI’s grievance redressal or investor protection mechanisms.
What Investors Should Do
SEBI advises the public to invest only in SEBI-regulated gold products through registered intermediaries such as mutual funds or recognized exchanges. Investors should verify the regulatory status of any online platform before making gold-related investments.
Important: SEBI’s investor protection mechanisms do not apply to investments made in unregulated “Digital Gold” or “E-Gold” products.
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