The Securities and Exchange Board of India (Sebi), on Saturday, 8 November 2025, cautioned investors against buying unregulated products like and gold-related online products.
In a release, the capital markets regulator said it has observed online platforms offering investors digital asset options such as digital gold or e-gold products. However, these instruments are being marketed as an alternative investment in .
“It has come to the notice of SEBI that some digital/online platforms are offering investors to invest in ‘Digital Gold/E-Gold Products’. Digital Gold is being marketed as an alternative for investment in physical gold,” said Sebi.
No protection for digital gold?
informed the investors that the protection mechanisms will not be applicable for investments in these digital gold or e-gold products, as they are not identified as securities and are not regulated as commodity derivatives.
“Investors/participants are made aware that none of the mechanisms under securities market purview shall be available for investments in such Digital Gold/E-Gold products,” Sebi informed investors through its official announcement.
However, the regulator also clarified that investments in gold and gold-related instruments through various regulated products, such as ETFs, Mutual funds, etc., are protected through registered entities.
“Investments in these Sebi-regulated gold products can be made through Sebi-registered intermediaries and are governed by the regulatory framework prescribed by Sebi,” said the regulator.
Where do you buy digital gold?
According to data collected from the Tata Group’s venture Caratlane, companies are now offering mobile-first options where people can invest in buying gold using their smartphones.
Digital gold is a method of buying gold online which is backed by physical gold held in secure and insured vaults. However, according to Sebi’s recent notification, these items are not regulated under Sebi’s investor protection norms.
“It allows you to invest and track your holdings digitally, with the flexibility to redeem them as coins or ,” said CaratLane in a blog post on their website.
Companies like PhonePe, Google Pay, and Paytm, integrated with SafeGold, CaratLane, Tanishq and MMTC-PAMP websites, are places which offer potential buyers the option to invest in these online gold offerings.
Investors should also be aware that buying digital gold products also comes with goods and services tax (GST), capital gains tax, and short-term gains tax implications.
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