SEBI Chairman Tuhin Kant Pandey has warned investors about the risks of investing in digital gold.
He clarified that digital gold is not treated as a security and does not come under commodity derivatives.
Because of this, SEBI has no authority to protect investors if any platform selling digital gold fails or defaults.
Investors have been advised to be extremely cautious while investing in this product.
SEBI’s Statement at the National Conclave
While speaking at the National Conclave on REITs and InvITs-2025, the SEBI Chairman said that the digital gold industry is not regulated by SEBI, even though many have demanded its regulation for a long time.
He urged investors to carefully understand the platform and its terms and conditions before investing in digital gold.
Currently, SEBI regulates only two types of gold-related investments:
Gold ETFs, and
Tradable gold securities
Both of these fall under SEBI’s regulatory framework.
What Is Digital Gold?
Digital gold is a form of gold investment where you do not physically buy gold. The entire process is digital.
In India, platforms like Paytm, PhonePe, and Google Pay allow users to invest in digital gold.
The digital gold market has grown significantly—
It was worth ₹5,000 crore in 2021,
And has now expanded to around ₹13,800 crore.
