What is Sebi's warning about digital gold products?

Sebi has warned investors against unregulated online platforms offering digital gold products, stating that these are neither classified as securities nor regulated commodity derivatives and carry significant counterparty and operational risks.

What are the Sebi-regulated gold investment options?

Sebi has enabled investments in gold and gold-related instruments through various regulated products, including exchange-traded commodity derivative contracts, gold Exchange Traded Funds (ETFs) offered by Mutual Funds, and Electronic Gold Receipts (EGRs) tradeable on stock exchanges.

How can investors protect themselves from Sebi impersonation scams?

Sebi has cautioned investors against fabricated communications sent by scammers disguised as Sebi officials, seeking payments on behalf of the regulator. Investors are advised to verify the authenticity of any such communications before responding.

Home / Business and Economy / Sebi Warns Investors Against Risky 'Digital Gold' Platforms

Sebi Warns Investors Against Risky 'Digital Gold' Platforms

9 Nov

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Summary

Sebi cautions investors against unregulated online platforms offering digital gold products
Digital gold products are neither classified as securities nor regulated commodity derivatives
Such investments carry significant counterparty and operational risks

Sebi Warns Investors Against Risky 'Digital Gold' Platforms

As of November 9th, 2025, the Securities and Exchange Board of India (Sebi) has cautioned investors against unregulated online platforms offering digital gold products. Sebi has stated that these digital gold offerings are neither classified as securities nor regulated commodity derivatives, and therefore fall outside the regulator's investor protection framework.

Sebi has highlighted that such digital gold investments carry significant counterparty and operational risks for investors. Unlike Sebi-regulated gold products like exchange-traded funds (ETFs) and electronic gold receipts (EGRs), these unregulated digital gold platforms do not provide the same level of safeguards and oversight.

The market regulator has advised investors to be wary of these digital gold offerings and instead opt for Sebi-regulated gold investment options. Sebi-regulated gold products allow investments through registered intermediaries and are governed by the regulatory framework prescribed by the securities watchdog.

In addition to the digital gold warning, Sebi has also recently issued alerts about fraudsters impersonating Sebi officials and sending fabricated communications to entities, seeking payments on behalf of the regulator. Investors are advised to exercise caution and verify the authenticity of any such communications.

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