Digital Gold Investment Risk: Securities and Exchange Board of India (SEBI) Chairman Tuhin Kant Pandey has cautioned those investing in digital gold. SEBI has said in clear words that digital gold is neither considered a security nor does it come under the scope of commodity derivatives.
According to SEBI, if a platform defaults, then in such a situation SEBI has no means to protect investors. SEBI has advised those investing in digital gold to exercise utmost caution.
SEBI issued statement
Chairman Tuhin Kant Pandey informed in the National Conclave on REITs and InvITs – 2025 that SEBI does not regulate the digital gold industry. However, this has been demanded for a long time. He told the investors that while investing in digital gold, they must have complete information about the platform and its conditions.
SEBI currently regulates gold investments made in gold ETFs and tradable gold securities. Investments made in both of these come under the purview of SEBI.
What is digital gold?
Physical purchase of gold is not done under digital gold. This is a completely digital form of gold. In India, different platforms like Paytm, Phone Pay, Google Pay provide the facility to investors to invest in digital gold. Talking about the figures, in 2021 the digital gold market was worth Rs 5,000 crore, which has now increased to around Rs 13,800 crore.
Disclaimer: (The information provided here is being given for information only. It is important to mention here that investment in the market is subject to market risks. Always take expert advice before investing money as an investor. ABPLive.com never advises anyone to invest money here.)
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