SEBI Warns Investors Against Unregulated Digital Gold Platforms

The Securities and Exchange Board of India (SEBI) recently shared a press release on November 8, 2025, regarding dealing in ‘Digital Gold.’

The Securities and Exchange Board of India (SEBI) has begun the investestment in gold through several SEBI-regulated gold products. SEBI-regulated options are Gold Exchange Traded Funds (Gold ETFs) and Electronic Gold Receipts (EGRs). All these gold investment options are regulated by SEBI.

However, SEBI noticed that some online platforms and apps are offering people the chance to invest in “Digital Gold,” claiming it to be an easy alternative to buying physical gold. However, SEBI has explained that these digital gold products are not the same as SEBI-approved gold investment options like Gold ETFs or Electronic Gold Receipts.

These products are not officially recognized as securities because they operate outside SEBI’s supervision, investing in such products can be risky; investors might face problems if the platform fails, does not actually hold the gold it promises, or mishandles transactions.

SEBI has also cautioned that investors should understand that no investor protection measures such as those available in the securities market will apply to investments made in Digital Gold or E-Gold products.