Overview
- Sebi said digital and e-gold products are neither notified as securities nor regulated as commodity derivatives, so standard investor protections do not apply.
- The watchdog noted a surge in such offerings on online platforms and through jewellers, where they are marketed as convenient alternatives to holding physical gold.
- Indian Express reported MCX spot gold prices have risen about 59% over the past year, a jump that has helped draw retail interest to digital gold.
- Investors were directed toward Sebi-regulated avenues such as gold ETFs, exchange-traded commodity derivatives, and electronic gold receipts, with experts also recommending Sovereign Gold Bonds.
- Market experts highlighted default and operational risks from unregulated platforms and advised holders to review custody, audits, and disclosures rather than rushing to redeem.