SEBI Cautions Investors Against Unregulated Digital Gold Products

New Delhi, Nov 10, 2025: The Securities and Exchange Board of India has issued a advisory cautioning investors against buying or investing in unregulated digital or “e-gold” products. The regulator said such instruments fall outside the ambit of SEBI and pose substantial risks.

SEBI said that many online platforms are offering digital gold or “e-gold” as easy alternative to investing in the yellow metal. The regulator, however, clarified that such products are neither securities by nature nor commodity derivativesand thus completely fall outside the purview of SEBI.

Further, according to SEBI, digital gold investments may expose investors to counterparty and operational risks, as they lack the investor protection safeguards applicable to regulated securities.

The regulator asked investors to consider SEBI regulated gold investment schemes, including:

• Gold Exchange Traded Funds
• Exchange-traded commodity derivative contracts
• Electronic Gold Receipts

These instruments are available through registered intermediaries, SEBI said, and function within a well-defined regulatory framework devised to protect investors.

The advisory is a timely reminder as interest in digital avenues of investment continues to grow, reinforcing the need for caution and due diligence in advance of investing in unregulated financial products.

REF: https://www.sebi.gov.in/media-and-notifications/press-releases/nov-2025/caution-to-public-regarding-dealing-in-digital-gold-_97676.html

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