SEBI cautions public against Digital Gold investments offered by unregulated platforms
SEBI stated that it has come to the regulator’s notice that certain online platforms are offering “Digital Gold” or “E-Gold” products to investors. The regulator clarified that these products do not fall under the securities market framework and therefore operate completely outside SEBI’s purview.
- Nov 8, 2025,
- Updated Nov 8, 2025 4:04 PM IST
From UPI apps to jewellery brands, digital gold has found its way into every corner of India’s fintech ecosystem, allowing users to buy gold worth just Rs 10 with a few taps. But behind the convenience lies a regulatory gap — and the Securities and Exchange Board of India (SEBI) is now warning that these products, though widely marketed, operate outside its supervision and could put investors at risk.
In a press release issued on Saturday, SEBI stated that it has come to the regulator’s notice that certain online platforms are offering “Digital Gold” or “E-Gold” products to investors. The regulator clarified that these products do not fall under the securities market framework and therefore operate completely outside SEBI’s purview. “Such digital gold products are neither notified as securities nor regulated as commodity derivatives,” SEBI said, adding that they may expose investors to counterparty and operational risks.
The regulator also emphasised that investors purchasing such products will not be covered by any investor protection mechanisms available in SEBI-regulated markets. This means that, in case of fraud, insolvency, or disputes, investors may have little to no recourse through the securities market system.
Despite this warning, digital gold continues to attract wide participation, particularly among young and first-time investors drawn to its accessibility and low entry thresholds. The idea is simple: investors purchase gold digitally, while an equivalent quantity of physical gold is stored in a vault by the platform provider. Buyers can later sell it back online or have it delivered physically as coins or bars.
In India, three key entities dominate this space — MMTC-PAMP, SafeGold (Digital Gold India Pvt. Ltd.), and Augmont Gold — each partnering with a host of fintech platforms, banks, and jewellery brands to distribute their products. MMTC-PAMP, a joint venture between the government-backed MMTC Ltd. and Swiss refiner MKS PAMP, is known for its 99.99% pure, LBMA-accredited gold. SafeGold, partly owned by the World Gold Council, offers 24K gold of 99.5% purity or higher, while Augmont is another major player providing similar services.
These providers distribute their products through popular consumer-facing platforms including Google Pay, Paytm, PhonePe, Amazon Pay, Groww, Airtel Payments Bank, and Jio Gold, as well as jewellery brands such as Tanishq DigiGold, Jos Alukkas, CaratLane, and PC Jewellers. For instance, Tanishq’s website describes its digital gold as “a trusted and transparent method of purchasing 24 Karat pure gold powered by SafeGold,” allowing investments starting from ₹100 and redemption at over 350 stores across India.
While such partnerships with reputable brands lend credibility, SEBI’s concern lies in the absence of a regulatory safety net. Even if a digital gold provider defaults, investors cannot seek protection under SEBI regulations. This makes digital gold fundamentally different from SEBI-regulated instruments like Gold Exchange Traded Funds (ETFs), Electronic Gold Receipts (EGRs), and exchange-traded commodity derivatives, which are backed by regulatory oversight and can be purchased through SEBI-registered intermediaries.
Experts note that digital gold is convenient but not risk-free. In the past, even seemingly safe gold saving schemes run by jewellers faced scrutiny due to lack of regulatory safeguards. SEBI’s latest warning reinforces a long-standing principle in investing — that trust should not replace regulation.
For investors seeking exposure to gold, SEBI recommends using regulated avenues such as ETFs or EGRs, where transparency, liquidity, and investor protection frameworks are firmly in place.
From UPI apps to jewellery brands, digital gold has found its way into every corner of India’s fintech ecosystem, allowing users to buy gold worth just Rs 10 with a few taps. But behind the convenience lies a regulatory gap — and the Securities and Exchange Board of India (SEBI) is now warning that these products, though widely marketed, operate outside its supervision and could put investors at risk.
In a press release issued on Saturday, SEBI stated that it has come to the regulator’s notice that certain online platforms are offering “Digital Gold” or “E-Gold” products to investors. The regulator clarified that these products do not fall under the securities market framework and therefore operate completely outside SEBI’s purview. “Such digital gold products are neither notified as securities nor regulated as commodity derivatives,” SEBI said, adding that they may expose investors to counterparty and operational risks.
The regulator also emphasised that investors purchasing such products will not be covered by any investor protection mechanisms available in SEBI-regulated markets. This means that, in case of fraud, insolvency, or disputes, investors may have little to no recourse through the securities market system.
Despite this warning, digital gold continues to attract wide participation, particularly among young and first-time investors drawn to its accessibility and low entry thresholds. The idea is simple: investors purchase gold digitally, while an equivalent quantity of physical gold is stored in a vault by the platform provider. Buyers can later sell it back online or have it delivered physically as coins or bars.
In India, three key entities dominate this space — MMTC-PAMP, SafeGold (Digital Gold India Pvt. Ltd.), and Augmont Gold — each partnering with a host of fintech platforms, banks, and jewellery brands to distribute their products. MMTC-PAMP, a joint venture between the government-backed MMTC Ltd. and Swiss refiner MKS PAMP, is known for its 99.99% pure, LBMA-accredited gold. SafeGold, partly owned by the World Gold Council, offers 24K gold of 99.5% purity or higher, while Augmont is another major player providing similar services.
These providers distribute their products through popular consumer-facing platforms including Google Pay, Paytm, PhonePe, Amazon Pay, Groww, Airtel Payments Bank, and Jio Gold, as well as jewellery brands such as Tanishq DigiGold, Jos Alukkas, CaratLane, and PC Jewellers. For instance, Tanishq’s website describes its digital gold as “a trusted and transparent method of purchasing 24 Karat pure gold powered by SafeGold,” allowing investments starting from ₹100 and redemption at over 350 stores across India.
While such partnerships with reputable brands lend credibility, SEBI’s concern lies in the absence of a regulatory safety net. Even if a digital gold provider defaults, investors cannot seek protection under SEBI regulations. This makes digital gold fundamentally different from SEBI-regulated instruments like Gold Exchange Traded Funds (ETFs), Electronic Gold Receipts (EGRs), and exchange-traded commodity derivatives, which are backed by regulatory oversight and can be purchased through SEBI-registered intermediaries.
Experts note that digital gold is convenient but not risk-free. In the past, even seemingly safe gold saving schemes run by jewellers faced scrutiny due to lack of regulatory safeguards. SEBI’s latest warning reinforces a long-standing principle in investing — that trust should not replace regulation.
For investors seeking exposure to gold, SEBI recommends using regulated avenues such as ETFs or EGRs, where transparency, liquidity, and investor protection frameworks are firmly in place.