Bhubaneswar: The Securities and Exchange Board of India (SEBI) has issued a public advisory warning consumers against investing in digital gold products offered by jewellery brands and online platforms such as Tanishq and MMTC-PAMP. The market regulator clarified that these products fall outside its regulatory framework, leaving investors exposed to significant financial and operational risks.
In recent years, digital gold has gained popularity across e-commerce apps, jewellery brands, fintech firms, and private refiners. These platforms promote the product as a convenient and customer-friendly alternative to physical gold, allowing consumers to buy, sell, or store gold in digital form with ease. However, SEBI has stressed that such offerings remain unregulated, and therefore do not come under its investor protection mechanisms.
The regulator also highlighted that it has no oversight authority or grievance redressal role in matters related to digital gold. This means customers have limited protection or legal recourse in situations involving fraud, price discrepancies, storage issues, or platform-related failures.
SEBI’s caution is expected to influence consumer behaviour during the ongoing surge in digital investment products. While the demand for digital gold continues to rise, the advisory underscores the need for investors to evaluate risks carefully and seek clarity on regulatory safeguards before engaging with such platforms.
-OdishaAge
