The Securities and Exchange Board of India’s (SEBI) latest circular cautioning investors against “Digital Gold” or “E-Gold” products must have raised a question for retail investors: should they redeem their holdings or stay put?

SEBI clarified that digital gold offered by various online platforms — including fintech apps, payment gateways, and jewellery brands — does not fall under its regulatory ambit.

Such products are neither recognised as securities nor regulated as commodity derivatives, meaning they operate outside the protection of securities law.

What SEBI said — and what it means

In its advisory, SEBI stressed that regulated gold investments already exist — namely, Gold Exchange-Traded Funds (ETFs), Electronic Gold Receipts (EGRs), and gold-linked commodity derivatives trade

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