The Securities and Exchange Board of India (SEBI) has cautioned investors against investing in unregulated digital gold products offered by online platforms. The SEBI said, such schemes operate outside its regulatory purview.
The market regulator said, it has observed that certain digital and online platforms are promoting investments in Digital Gold or E-Gold Products as alternatives to physical gold. SEBI underlined that these products are not recognised as securities or regulated commodity derivatives under existing laws. The regulator also reminded investors that no investor protection mechanisms applicable in the securities market would cover investments in such unregulated digital gold or e-gold schemes.
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