SEBI Issues Caution on Digital Gold Investments
The Securities and Exchange Board of India (SEBI) has issued a warning to investors about the risks associated with Digital Gold and E-Gold investments, stating that these products do not have legal protection.
According to SEBI, digital gold is not recognized as a security or commodity, and therefore does not fall under its regulatory control. The regulator has clarified that individuals wishing to invest in gold can do so legally through commodity derivatives, Gold Exchange Traded Funds (ETFs), or Electronic Gold Receipts (EGRs) that are traded on recognized stock exchanges.
Despite SEBI’s warning, several well-known brands and financial platforms continue to offer and promote digital gold to customers. Among them are Tanishq, Aditya Birla Capital, Caratlane, Jos Alukkas, PhonePe, and Shriram Finance.
SEBI has advised the public to exercise caution and ensure that their investments are made only through regulated and legally recognized channels.
