Sebi chief Tuhin Kanta Pandey says not looking to regulate digital gold

Sebi chairman Tuhin Kanta Pandey on Friday clarified that the markets regulator is not looking to regulate 'digital gold' or 'e-gold' products as these do not fall under its purview.

Speaking on the sidelines of the National Conclave on REITs and InvITs-2025, Pandey said that regulated gold-related investments can be made through exchange-traded funds (ETFs) offered by mutual funds or through other tradable gold securities.

The clarification came days after the digital gold industry urged the Securities and Exchange Board of India (Sebi) to bring digital gold platforms under formal regulation.

Earlier this month, Sebi had warned investors against investing in digital or e-gold products, saying such instruments fall outside its regulatory framework and involve significant risks.

The cautionary statement came after Sebi observed that some online platforms have been promoting digital gold' or e-gold' products as an easy alternative to investing in physical gold.

"In this context, it is informed that such digital gold products are different from Sebi-regulated gold products as they are neither notified as securities nor regulated as commodity derivatives. They operate entirely outside the purview of Sebi," the regulator had stated.

"Such digital gold products may entail significant risks for investors and may expose investors to counterparty and operational risks," it had added.

Sebi had further clarified that investor protection mechanisms applicable to regulated securities will not extend to such unregulated digital gold schemes. The regulator had stated that investors can gain exposure to gold through Sebi-regulated instruments such as Gold ETFs offered by mutual funds, exchange-traded commodity derivative contracts, and Electronic Gold Receipts tradable on stock exchanges.

Further, investments in these Sebi-regulated gold products can be made through registered intermediaries and are governed by the regulatory framework prescribed by the regulator, it had added.