SEBI Digital Gold Advisory: Do Investors Need to Worry?

On Saturday, November 8, 2025, the capital market regulator, the Securities and Exchange Board of India (SEBI) has warned investors regarding investments in digital gold.
SEBI Raised Red Flag on Digital Gold Investments
The market regulator stated that a few digital/online platforms are offering investors to invest in ‘Digital Gold/E-Gold Products’, which are not allowed by the SEBI. These digital gold offered by the online platforms are being marketed as an alternative for investment in physical gold.
The regulator emphasised that these digital gold products differ from SEBI-regulated gold instruments, as they are neither classified as securities nor governed under commodity derivatives regulations. Consequently, they function entirely outside SEBI’s regulatory framework, exposing investors to significant counterparty and operational risks.
Digital Gold Investments Allowed by SEBI
SEBI highlighted that investors seeking gold-related investments can do so through SEBI-regulated instruments, which include:
- Exchange-traded commodity derivative contracts,
- Gold Exchange Traded Funds (ETFs) are offered by mutual funds, and
- Electronic Gold Receipts (EGRs) are tradable on stock exchanges.
Investments in these products can be made through SEBI-registered intermediaries and are safeguarded under the regulatory mechanisms prescribed by SEBI.
Conclusion
The regulator further cautioned that investor protection measures available in the securities market do not extend to investments made in unregulated Digital Gold or E-Gold products.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: Nov 10, 2025, 7:53 AM IST

Sachin Gupta
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