Sebi cautions investors on digital gold platforms outside regulatory framework

The Securities and Exchange Board of India (Sebi) has cautioned investors against putting money into unregulated “digital gold” or “e-gold” products offered by various online platforms, warning that such investments fall outside its regulatory framework and carry significant risks.

Digital gold is a method of investing in pure 24-carat gold without holding any physical bar or coin. Investors can invest in a fractional amount of gold starting at ₹1 and can either sell their holdings or convert them into physical gold as per their requirements, with round-the-clock access and a digital interface, making it appealing to micro-savers and young investors.