Six of the Regulital gold

After warning the public against investing in digital gold, Sebi chairman Tuhin Kanta Pandey has made it clear that it has no plans to regulate it as it does not fall under his jurisdiction.In a statement on the sidelines of the National Conclave on REITs & InvITs 2025 in New Delhi, Pandey said Sebi’s gold rules have already been explained through a press release. Investing in gold can be done through ETFs (Exchange Traded Funds), which are offered by investment funds, or through tradable gold securities. “These are the products that are part of the regulated industry. So for now, we are only focusing on these products,” Pandey said on the sidelines of the event. The Sebi chief added that digital gold does not fall under his purview as it is not a security.

In a Nov. 8 press release, the capital markets regulator said it has noted that several digital and online platforms are offering investors the opportunity to invest in “Digital Gold” or “E-Gold” products, often positioning them as an alternative to physical gold.

It is important to clarify that these digital gold products are not the same as Sebi regulated gold products. They are neither registered as securities nor regulated as commodity derivatives, and therefore operate completely outside Sebi’s regulatory framework.

It said investors should be aware that such products can involve significant risks, including counterparty and operational risks. Furthermore, none of the investor protection mechanisms available within the securities markets apply to investments in digital gold or e-gold products. Sebi advises investors to exercise caution while considering such offers, it added.

The lack of regulatory oversight means that investors may not have strong safeguards regarding redemption, conversion to physical gold, security of custody or transparency regarding the underlying gold backing these products. Sebi’s publication mainly serves as a reminder for customers to verify where and how their gold is stored so that their investments remain safe and traceable. Also read: Quiet listing, loud returns: Ather’s multibagger post-IPO rally delivers windfalls for promoters as returns soar to 3,220%. broaden participation and deepen India’s relatively young REIT and InvIT ecosystem. He added that the market regulator will further expand the pool of liquid mutual funds to include REITs and InvITs, underscoring the regulator’s intention to improve market access and liquidity.

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