SEBI digital gold warning FAQs: Buying e-gold may expose you to risks. Check what’s regulated

The Securities and Exchange Board of India (SEBI) on Saturday, November 8, 2025, warned investors against buying digital gold being sold by various online platforms.

In a press release titled 'Caution to public regarding dealing in ‘Digital Gold', the capital markets regulator said that digital gold/e-gold products offered by digital/online platforms are different from SEBI-regulated gold products.

"Such digital gold products may entail significant risks for investors and may expose investors to counterparty and operational risks," the regulator said.

What are the SEBI-regulated gold products?

The following gold products are regulated by SEBI:

• Exchange-traded commodity derivative contracts

• Gold Exchange Traded Funds (ETFs) offered by Mutual Funds

• Electronic Gold Receipts (EGRs)

SEBI-regulated products are tradeable on stock exchanges.

Investments in the above SEBI-regulated gold products can be made through SEBI-registered intermediaries. These products are governed by the regulatory framework prescribed by SEBI.

What are the risks of digital gold?

Digital gold offered by online platforms operates entirely outside of the purview of SEBI. According to the regulator, digital gold products entail significant risks for investors. Investing in digital gold may expose you to counterparty and operational risks.

Moreover, investor protection mechanisms under SEBI are not available for digital gold.

"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/ EGold products," SEBI said.

What did SEBI say about digital gold? Full text

Here is the full text of the SEBI's warning against 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 to 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/ EGold products.