digital gold
Market regulator SEBI on Saturday warned investors against investing in digital or e-gold products. According to SEBI, these products are outside its regulatory framework, hence the risk in them is high. The warning was issued after SEBI found that many online platforms were aggressively promoting digital gold as an easy alternative to physical gold.
SEBI said that digital gold is neither notified as securities nor regulated as commodity derivatives in any form. As a result, these fall completely out of its regulatory coverage. SEBI clarified that investor protection provisions applicable to regulated securities do not apply to such unregulated digital gold schemes.
Where can you invest money?
SEBI has advised investors to invest in gold only through SEBI-regulated instruments. This includes gold ETFs, electronic gold receipts and exchange-traded commodity derivatives. These products are traded on recognized stock exchanges and come under SEBI regulations. Investments should always be made through registered intermediaries only. The risk of loss is high in trading through unregistered people.
purchasing digital gold
In the last few years, many private companies have started selling digital gold through apps and websites. Tata Group companies like Caratlane, Safegold, Tanishq and MMTC-PAMP offer digital gold. Apps like PhonePe, Google Pay and Paytm, in partnership with these companies, also give users the option to buy gold online for a few rupees. According to Caratlane, with digital gold, customers can buy gold online, keep track of it and redeem it in the form of jewelery or gold coins when needed.