SEBI warns investors against unregulated ‘Digital Gold’ sold via online platforms

In public notification SEBI has issued an advisory, that the market regulator cleared these products are unregulated. SEBI informed that these kind of digital gold are different from SEBI regulated gold products. These products are not notified as securities and regulated as commodity derivatives.

Mumbai: The Securities and Exchange Board of India (SEBI) has warned investors against investing in 'Digital Gold' or 'E-Gold' products which are being sold on a number of online and digital platforms.

In public notification SEBI has issued an advisory, that the market regulator cleared these products are unregulated. SEBI informed that these kind of digital gold are different from SEBI regulated gold products. These products are not notified as securities and regulated as commodity derivatives.

It means that if in any case online platforms default on Digital Gold or E-Gold Product investors investment then SEBI will not be able to help the investors for their investment because they don't have regulator's protection mechanism.

SEBI released this advisory amid rising popularity of app-based and online gold investment platforms. They allow users to buy gold digitally. SEBI fears that they may mislead investors about safety and regulatory protection.

(...being updated)