SEBI Warns Investors Against Unregulated ‘Digital Gold’ Offers on Online Platforms

SEBI Warns Investors Against Unregulated ‘Digital Gold’ Offers on Online Platforms

NEW DELHI: Securities and Exchange Board of India (SEBI) has issued a strong caution to the public after noticing a surge in online platforms promoting investments in so-called “Digital Gold” or “E-Gold” products.

In an official statement (PR No. 70/2025), the regulator clarified that these offerings operate outside SEBI’s regulatory framework and pose significant risks to investors.

SEBI focuses that it already provides several regulated avenues for investing in gold, including exchange-traded commodity derivatives, Gold Exchange Traded Funds (ETFs) offered by mutual funds, and Electronic Gold Receipts (EGRs) which are traded on stock exchanges. These products are fully governed by SEBI rules and can be accessed only through registered intermediaries.

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However, the regulator warned that many digital gold products being sold online are not classified as securities and are not regulated as commodity derivatives. As a result, they do not offer the safeguards or investor-protection mechanisms available in SEBI-regulated markets.

SEBI noted that these products may expose buyers to high counterparty risk, operational issues, and the possibility of disputes with no regulatory recourse.

According to SEBI, digital platforms often market Digital Gold as a convenient alternative to physical gold, but investors should be aware that such offerings fall completely outside the securities market oversight.

The regulator urged the public to exercise caution and rely only on SEBI-regulated gold instruments to ensure transparency, safety, and proper investor protection.