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Sebi Warns Investors Against Risky 'Digital Gold' Platforms
9 Nov
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
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.
