SEBI warns investors over unregulated ‘digital gold’

While digital gold platforms aggressively promote it as an easy, seamless, and convenient way to buy gold online for as little as Rs 10, market regulator SEBI has warned investors about potential risks, noting that such platforms remain unregulated.

SEBI, in a statement, cautioned against investing in Digital Gold products offered through various online platforms, stating that these products are not regulated under the securities market framework and may carry significant risks.

In a press release issued on Saturday, SEBI said it has come to the notice of the regulator that some digital or online platforms are offering investors to invest in ‘Digital Gold or E-Gold Products.

SEBI also cautioned that investors or participants are made aware that none of the investor protection mechanisms under securities market purview shall be available for investments in such Digital Gold or E-Gold products.

With the trend of investors growing interest in buying or investing in gold, many online platforms have come up which are offering such products, which are not regulated by SEBI.

Multiple platforms are offering digital gold.