The Securities and Exchange Board of India (SEBI) has warned investors against putting money into digital gold products offered by fintech apps and online platforms, citing the absence of regulatory oversight. In its recent advisory, the market watchdog clarified that these instruments are not classified as securities or regulated as commodity derivatives, placing them outside SEBI’s jurisdiction. Advertisement

Digital gold is often marketed as a convenient and secure way to buy gold online, but SEBI cautioned that such products carry counterparty and operational risks. Since these offerings do not fall under any regulatory framework, there is no guarantee regarding the storage, redemption, or physical backing of the gold claimed to be held on investors’ behalf.

“Investor protection mec

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