In a statement on the sidelines of the National Conclave on REITs and InvITs 2025 in New Delhi, Pandey said Sebi’s gold regulations have already been explained through a press release. Investing in gold can be done either through ETFs (Exchange Traded Funds), which offer mutual funds, or through tradable gold securities. “These are products included in the regulated industry. So for now, we are focused only on these products,” Pandey said on the sidelines of the event. The Sebi chief added that digital gold does not come under its purview as it is not a security.
In a press release on November 8, the capital markets regulator said it has noticed that many digital and online platforms offer investors the option to invest in “digital gold” or “e-gold” products, often positioning them as an alternative to physical gold.
It is important to clarify that these digital gold products are not the same as SEBI-regulated gold products. They are neither denominated as securities nor regulated as commodity derivatives, and therefore operate completely outside the regulatory framework of SEBI.
It said investors should be aware that such products may involve significant risks, including counterparty and operational risks. Further, none of the investor protection mechanisms available under the securities market framework are applicable to investments in digital gold or e-gold products. SEBI advises investors to exercise caution while considering such offers.
The absence of regulatory oversight means that investors do not have strong protections around redemption, conversion to physical gold, vaulting assurance, or transparency about the underlying gold backing these products. SEBI’s announcement primarily serves as a reminder to consumers to verify where and how their gold is stored, so that their investment remains safe and traceable.
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In a separate development, Tuhin Kanta Pandey also said that Sebi is looking at the inclusion of REITs in indices in a calibrated manner, signaling a renewed push to expand and deepen India’s relatively young REIT and InvIT ecosystem. He added that the market regulator will further expand the pool of liquid mutual funds to include REITs and InvITs, underscoring the regulator’s intention to improve market access and liquidity.
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