In the last few years, the popularity of digital gold has increased rapidly among the people of the country. In 2017, RBI launched the Gold ETF scheme, which was well received. However, the country’s capital markets regulator, SEBI, on November 8, 2025, warned investors not to invest in unregulated products like digital gold or e-gold. Many online platforms are promoting these products as gold investment options. However, SEBI has clarified that these are neither securities nor regulated as commodity derivatives.
Why investing in digital gold is not considered a security?
According to SEBI, investments in such unregulated digital gold products will not be subject to any investor protection system within the securities market. These products are outside the regulatory purview of SEBI. Therefore, there will be no legal recourse in case of any fraud or loss.
Which gold investment options are covered by securities?
SEBI said gold ETFs, mutual funds or other regulated gold-related products are available through SEBI-registered intermediaries. Investments in these are protected under an established regulatory framework and investor protection is enforced.
Should you avoid digital gold?
Yes, SEBI has urged investors to avoid unregulated platforms. Invest in gold only through a SEBI-registered intermediary to protect both your money and your trust.
Where do you buy digital gold?
According to data from Tata Group company Caratlane, many companies are now offering mobile-first digital gold options. With this, people can invest by buying gold from their smartphones. Digital gold is a way to buy gold online, which is backed by physical gold stored in a secure and insured vault. However, as per a recent SEBI notification, these products do not fall under the investor protection regulations of SEBI.
Can digital gold be converted into jewellery?
Caratlane says it allows you to track your investments and holdings digitally. You can also redeem it in the form of coins or jewellery. Currently, companies like PhonePe, Google Pay and Paytm, along with SafeGold, CaratLane, Tanishq and MMTC-PAMP, offer digital gold. Customers can easily invest in gold online on these platforms.
