The Securities and Exchange Board of India (SEBI) has issued a public caution through Press Release No. 70/2025 dated November 8, 2025, warning investors against dealing in “Digital Gold” or “E-Gold” products offered by certain online platforms. SEBI clarified that while it has enabled regulated investment options in gold and gold-related instruments, such as exchange-traded commodity derivative contracts, Gold Exchange Traded Funds (ETFs) offered by mutual funds, and Electronic Gold Receipts (EGRs) traded on stock exchanges, these products are distinctly different from the digital gold products being promoted online.
According to SEBI, investments in SEBI-regulated gold products can only be made through SEBI-registered intermediaries and are governed by its prescribed regulatory framework. However, the so-called “Digital Gold” or “E-Gold” products being marketed by unregulated entities do not fall under SEBI’s purview. They are neither notified as securities nor recognized as commodity derivatives, and therefore operate outside the regulatory ambit of SEBI.
The regulator has cautioned that such unregulated products may carry significant risks, including counterparty and operational risks, as they lack the safeguards applicable to SEBI-regulated products. SEBI emphasized that investor protection mechanisms available within the securities market framework do not apply to investments made in digital gold or similar offerings.
Investors have been advised to exercise caution and ensure that any gold-related investment is made only through SEBI-regulated channels such as ETFs, commodity derivatives, or EGRs traded on recognized exchanges. The advisory underscores SEBI’s concern regarding the potential financial risks posed by unregulated online investment products being marketed under the guise of digital gold.
Securities and Exchange Board of India
PR No.70/2025
Caution to public regarding dealing in ‘Digital Gold’
SEBI has enabled investments in gold and gold related instruments through various SEBI regulated gold products. These are exchange traded commodity derivative contracts, Gold Exchange Traded Funds (ETFs) offered by Mutual Funds and Electronic Gold Receipts (EGRs) tradeable on stock exchanges. Investments in these SEBI regulated gold products can be made through SEBI registered intermediaries and are governed by the regulatory framework prescribed by SEBI.
It has come to the notice of SEBI that some digital/online platforms are offering investors to invest in ‘Digital Gold/E-Gold Products’. Digital Gold is being marketed as an alternative for investment in physical gold.
In this context, it is informed that such digital gold products are different from SEBI regulated gold products as they are neither notified as securities nor regulated as commodity derivatives. They operate entirely outside the purview of SEBI. Such digital gold products may entail significant risks for investors and may expose investors to counterparty and operational risks.
Investors / participants are made aware that none of the investor protection mechanisms under securities market purview shall be available for investments in such Digital Gold/ E-Gold products.
Mumbai
November 08, 2025
