The Securities and Exchange Board of India (SEBI) has issued a formal warning to investors concerning the rising popularity of digital-gold or e-gold products being offered on online platforms. According to the advisory, these investments fall outside SEBI’s regulatory jurisdiction and thus lack the oversight protections available for regulated financial instruments.
The regulator emphasised that digital-gold products present significant counterparty and operational risks since the platforms offering them may not be subject to standard checks or audits. Many of these offerings are not backed by physical gold in a transparent, verifiable way, creating inherent uncertainty for retail investors.
SEBI urged the public to proceed with caution and to avoid treating digital-gold offerings as equivalent to regulated securities or gold investment schemes. Consumers were advised to carefully assess the credentials of the platform, check whether holdings are verifiable, and consider sticking to gold-investment vehicles under regulatory oversight. The warning underscores the growing regulatory concern over unregulated fintech products targeting retail investors.
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