Capital markets regulator SEBI has cautioned investors on digital gold products offered by many unregulated entities as an alternate to physical gold.

It has come to the notice of SEBI that some digital/online platforms are offering ‘Digital Gold/E-Gold Products’. It is being marketed as an alternative for investment in physical gold, said SEBI.

Digital gold products are different from SEBI-regulated gold products as they are neither notified as securities nor regulated as commodity derivatives. They operate entirely outside the purview of SEBI. Such digital gold products may entail significant risks for investors and may expose investors to counterparty and operational risks, it said.

The capital markets regulator emphasised that none of the investor protection mechanisms under securit

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