Sebi Issues Stark Warning Against Digital Gold Investments
Markets regulator Sebi has issued a new warning for investors. It is about ‘digital gold’ or ‘e-gold’ products.
Sebi says be very careful with these online offers. Many apps and websites are promoting them as an easy way to buy gold.
The regulator has made it clear. These digital gold products are not regulated by Sebi. They operate completely outside its rules.
This means these investments come with big risks. You could face counterparty risk (if the company fails) and operational risk.
Most importantly, Sebi’s investor protection rules do not cover these schemes. Your money may not be safe.
So, what are the safer alternatives? Sebi points to its own regulated options.
You can safely invest in gold through:
- Gold ETFs (Exchange Traded Funds) from mutual funds.
- Electronic Gold Receipts on stock exchanges.
- Commodity derivative contracts on exchanges.
Always make these investments through registered intermediaries. This ensures you are protected by Sebi’s rules.
Be smart. Stick to regulated channels for your gold investments.
