SEBI Warns Investors against Unregulated Digital Gold Schemes
Nov 08, 2025
The Securities and Exchange Board of India (SEBI) has issued a cautionary advisory to investors regarding unregulated digital gold products offered by certain online platforms.
SEBI observed that some digital and online platforms are promoting investments in Digital Gold or E-Gold products as alternatives to physical gold. However, the market regulator emphasized that these products do not fall under the category of securities or regulated commodity derivatives under existing laws.
The regulator further warned that investments in such unregulated schemes are not protected by the investor protection mechanisms applicable in the securities market. Investors in these platforms may, therefore, face a higher risk of financial loss with no legal recourse in case of fraud or mismanagement.
SEBI urged investors to exercise caution and verify the regulatory status of digital gold platforms before investing.