The Securities and Exchange Board of India (SEBI) has cautioned investors against investing in “Digital Gold” or “E-Gold” products offered by various online platforms, stating that these instruments fall outside the purview of SEBI’s regulation and do not qualify as securities or commodity derivatives.

In a circular, the regulator said, “It has come to the notice of SEBI that some digital or online platforms are offering investors to invest in ‘Digital Gold/E-Gold products’. Such products are different from SEBI-regulated gold products, as they are neither notified as securities nor regulated as commodity derivatives.”

SEBI added that it already allows investment in regulated gold-linked instruments, such as Gold Exchange Traded Funds (ETFs), Electronic Gold Receipts (EGRs), and exchange

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