SEBI warns investors about counterparty and operational risks in digital gold

The Securities and Exchange Board of India (Sebi) has issued a warning to investors about digital gold. It noted that some digital/online platforms are offering investors to invest in Digital Gold/E - Gold Products and digital Gold is being marketed as an alternative for investment in physical gold. Such digital gold products may entail significant risks for investors and may expose investors to counterparty and operational risks. SEBI has enabled investments in gold and gold related instruments through various SEBI regulated gold products. These are exchange traded commodity derivative contracts, Gold Exchange Traded Funds (ETFs) offered by Mutual Funds and Electronic Gold Receipts (EGRs) tradeable on stock exchanges. Investments in these SEBI regulated gold products can be made through SEBI registered intermediaries and are governed by the regulatory framework prescribed by SEBI.

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