SEBI issues a major statement on digital gold! Investors should be cautious, otherwise they could face huge losses.:

News Topical, Digital Desk : Securities and Exchange Board of India (SEBI) Chairman Tuhin Kant Pandey has cautioned investors against investing in digital gold. SEBI has clearly stated that digital gold is neither considered a security nor does it fall under the scope of commodity derivatives. According to SEBI, if a platform defaults, it has no means to protect investors. SEBI has advised investors investing in digital gold to exercise utmost caution.

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SEBI issued a statement

Chairman Tuhin Kant Pandey informed the National Conclave on REITs and InvITs-2025 that SEBI does not regulate the digital gold industry. However, this has been a long-standing demand. He advised investors to fully understand the platform and its terms and conditions before investing in digital gold.

SEBI currently regulates gold investments made in gold ETFs and tradable gold securities. Investments in both of these fall under SEBI's purview.

What is digital gold?

Digital gold doesn't involve physically purchasing gold. It's a completely digital form of gold. In India, various platforms like Paytm, PhonePe, and Google Pay offer investors the ability to invest in digital gold. Statistically, the digital gold market was worth ₹5,000 crore in 2021, and has now grown to approximately ₹13,800 crore.