{"id":43273,"date":"2025-11-10T14:50:24","date_gmt":"2025-11-10T09:20:24","guid":{"rendered":"https:\/\/dailynewsindia.co.in\/index.php\/2025\/11\/10\/sebi-warning-on-digital-gold-major-risk-alert-for-investors-2025\/"},"modified":"2025-11-10T14:50:24","modified_gmt":"2025-11-10T09:20:24","slug":"sebi-warning-on-digital-gold-major-risk-alert-for-investors-2025","status":"publish","type":"post","link":"https:\/\/dailynewsindia.co.in\/index.php\/2025\/11\/10\/sebi-warning-on-digital-gold-major-risk-alert-for-investors-2025\/","title":{"rendered":"SEBI Warning on Digital Gold: Major Risk Alert for Investors \u2013 2025"},"content":{"rendered":"<div>\n<p><b>Mumbai (Maharashtra) [India], November 10:<\/b><span style=\"font-weight: 400;\"> India\u2019s market watchdog just dropped a truth bomb on digital gold. SEBI has officially warned that buying gold online through unregulated platforms might shine bright on your app but can burn deep in your pocket.<\/span><\/p>\n<h3><b>The Gold Rush Goes Digital, But Not Regulated<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Everyone\u2019s chasing gold. The metal\u2019s hitting record highs, and digital platforms promise an easy way to own a piece, for as little as \u20b910. Apps like Paytm, PhonePe, and even jewellers like Tanishq and MMTC-PAMP have turned gold investment into a tap-and-go experience.<\/span><\/p>\n<blockquote>\n<p><span style=\"font-weight: 400;\">But here\u2019s the kicker: SEBI says none of this is under its control. These platforms may be popular, but they\u2019re <\/span><i><span style=\"font-weight: 400;\">completely outside<\/span><\/i><span style=\"font-weight: 400;\"> India\u2019s securities law. Which means, if something goes wrong, you\u2019re on your own.<\/span><\/p>\n<\/blockquote>\n<p><span style=\"font-weight: 400;\">In a blunt statement, SEBI clarified that digital gold or e-gold isn\u2019t classified as a security or commodity derivative. Translation? It\u2019s not regulated by SEBI. No safety net. No investor protection mechanisms. Just you, your app, and faith.<\/span><\/p>\n<h3><b>What SEBI Actually Said<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">According to SEBI\u2019s press release, \u201cSuch digital gold products operate entirely outside the purview of SEBI. These may entail significant risks for investors and expose them to counterparty and operational risks.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That\u2019s regulatory speak for: \u201cIf the company defaults, vanishes, or messes up your account, SEBI can\u2019t help.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The regulator also reminded investors that India already offers multiple <\/span><i><span style=\"font-weight: 400;\">regulated<\/span><\/i><span style=\"font-weight: 400;\"> ways to invest in gold. These include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Gold Exchange Traded Funds (ETFs) offered by mutual funds<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Exchange-traded commodity derivative contracts<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Electronic Gold Receipts (EGRs) traded on recognised stock exchanges<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Each of these falls under SEBI\u2019s framework, with registered intermediaries and defined investor protections.<\/span><\/p>\n<h3><b>Who\u2019s Selling Digital Gold Anyway?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Big names, actually. Tanishq, part of the Tata Group, offers \u201cTanishq Digital Gold\u201d in partnership with SafeGold, letting users start with \u20b9100. MMTC-PAMP claims leadership in the segment, touting purity, storage, and flexibility. Aditya Birla Capital, Paytm, and Caratlane also promote digital gold as a convenient savings tool.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The trust factor of these brands gives investors a false sense of safety. SEBI\u2019s message? <strong>Brand trust \u2260 regulatory protection.<\/strong> Even the biggest names can\u2019t guarantee security if the product itself sits outside regulation.<\/span><\/p>\n<h3><b>India\u2019s Digital Gold Craze by the Numbers<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">India\u2019s love affair with gold has gone digital fast. NPCI data shows that in September alone, Indians purchased \u20b91,410 crore worth of digital gold via UPI, nearly double the \u20b9761 crore spent in January.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The surge coincided with gold prices skyrocketing from \u20b976,000 to over \u20b91.13 lakh per 10 grams. Clearly, the digital route appealed to micro-savers and first-time investors who wanted a bite of the golden pie without physical storage headaches.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But while the demand is genuine, regulation hasn\u2019t caught up. The Reserve Bank of India doesn\u2019t regulate it either. Digital gold, for now, is nobody\u2019s child, too financial for jewellers, too informal for regulators.<\/span><\/p>\n<h3><b>What Could Go Wrong<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Plenty. Since these platforms are unregulated, you have no guarantee that the gold actually exists, is safely stored, or is auditable. Custody risk is real, your digital claim might not match any physical holding.<\/span><\/p>\n<blockquote>\n<p><span style=\"font-weight: 400;\">And if the platform collapses or mismanages data? You\u2019re left holding digital dust. No SEBI dispute resolution, no investor grievance redressal.<\/span><\/p>\n<\/blockquote>\n<p><span style=\"font-weight: 400;\">The government had earlier discouraged similar \u201cgold saving schemes\u201d by jewellers that ran purely on trust. SEBI\u2019s tone here suggests a repeat of that caution, different packaging, same risk.<\/span><\/p>\n<h3><b>Safer Ways to Go for Gold<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">For those who love gold but not risk, SEBI\u2019s advice is simple: stick to regulated routes.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Gold ETFs:<\/b><span style=\"font-weight: 400;\"> Traded on exchanges, backed by physical gold, and managed by mutual funds.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>EGRs (Electronic Gold Receipts):<\/b><span style=\"font-weight: 400;\"> The new kid on the block, letting investors hold and trade gold digitally, fully within the legal market.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Commodity Derivatives:<\/b><span style=\"font-weight: 400;\"> For the pros who understand volatility.<\/span><\/li>\n<\/ul>\n<blockquote>\n<p><span style=\"font-weight: 400;\">Each of these offers clarity, transparency, and grievance mechanisms, the boring stuff that saves your portfolio in a crisis.<\/span><\/p>\n<\/blockquote>\n<h3><b>Investor Lesson: Shine vs Substance<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Digital gold looks sleek. It fits modern India\u2019s fintech image, instant, mobile-first, and bite-sized. But until there\u2019s regulation, it\u2019s like buying gold from a WhatsApp group.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As <strong><a href=\"https:\/\/www.sebi.gov.in\/media-and-notifications\/press-releases\/nov-2025\/caution-to-public-regarding-dealing-in-digital-gold-_97676.html\" target=\"_blank\" rel=\"noopener\">SEBI<\/a><\/strong> reminds us, the real shine lies in security. A true investor doesn\u2019t just chase returns, they demand regulation.<\/span><\/p>\n<p><strong><a href=\"https:\/\/pnndigital.com\/category\/news\/\">PNN News<\/a><\/strong><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Mumbai (Maharashtra) [India], November 10: India\u2019s market watchdog just dropped a truth bomb on digital gold. SEBI has officially warned that buying gold online through unregulated platforms might shine bright on your app but can burn deep in your pocket. The Gold Rush Goes Digital, But Not Regulated Everyone\u2019s chasing gold. The metal\u2019s hitting record&#8230;<\/p>\n<p class=\"more-link-wrap\"><a href=\"https:\/\/dailynewsindia.co.in\/index.php\/2025\/11\/10\/sebi-warning-on-digital-gold-major-risk-alert-for-investors-2025\/\" class=\"more-link\">Read More<span class=\"screen-reader-text\"> &ldquo;SEBI Warning on Digital Gold: Major Risk Alert for Investors \u2013 2025&rdquo;<\/span> &raquo;<\/a><\/p>\n","protected":false},"author":1,"featured_media":43274,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[635],"class_list":["post-43273","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-national","tag-national"],"_links":{"self":[{"href":"https:\/\/dailynewsindia.co.in\/index.php\/wp-json\/wp\/v2\/posts\/43273","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dailynewsindia.co.in\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dailynewsindia.co.in\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dailynewsindia.co.in\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dailynewsindia.co.in\/index.php\/wp-json\/wp\/v2\/comments?post=43273"}],"version-history":[{"count":0,"href":"https:\/\/dailynewsindia.co.in\/index.php\/wp-json\/wp\/v2\/posts\/43273\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dailynewsindia.co.in\/index.php\/wp-json\/wp\/v2\/media\/43274"}],"wp:attachment":[{"href":"https:\/\/dailynewsindia.co.in\/index.php\/wp-json\/wp\/v2\/media?parent=43273"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dailynewsindia.co.in\/index.php\/wp-json\/wp\/v2\/categories?post=43273"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dailynewsindia.co.in\/index.php\/wp-json\/wp\/v2\/tags?post=43273"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}