SEBI Flags Digital Gold Risks

  • In November 2025, SEBI issued high-level advisory cautioning retail investors against purchasing "Digital Gold" through unregulated online platforms.
  • Digital gold is a virtual financial product allowing investors to buy physical gold in small fractional amounts.
  • Currently, digital gold remains an unregulated financial instrument without oversight from the RBI or SEBI authorities.
  • Intermediaries selling these products do not possess the mandatory licenses required for registered investment advisors or brokers.
  • The product does not qualify as a "security" under the Securities Contracts (Regulation) Act of 1956.

Consumer Protection and Operational Risks

  • Investors face significant risks due to the absence of a standardized grievance redressal mechanism ....
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