Digital gold sold on apps and payment platforms sits outside SEBI's rules, so the protections you get with a mutual fund or a share do not apply. SEBI points savers to three regulated alternatives instead: gold ETFs, Electronic Gold Receipts and exchange-traded gold derivatives.
What SEBI said
On 8 November 2025, SEBI issued press release No. 70/2025, a caution to the public about digital gold and e-gold products offered on online platforms. It made four points:
- Some digital and online platforms are marketing digital gold as an alternative to physical gold.
- These products are neither notified as securities nor regulated as commodity derivatives, and operate entirely outside SEBI's purview.
- They may expose investors to counterparty and operational risks.
- None of the investor protection mechanisms of the securities market are available for them.
What that means for your money
With a regulated product, there is a rulebook for how your holding is kept, reported and protected, and a regulator to complain to. With digital gold, your claim rests on the platform and whatever company it says stores the gold. If either fails, mismanages the gold or changes its terms, SEBI's investor protection does not cover you.
That does not mean every platform is unsafe. It means the safety depends on the company, and you have to check it yourself.
The regulated ways to own gold
| Option | What it is | How you buy it |
|---|---|---|
| Gold ETF | A mutual fund unit backed by gold, traded on the stock exchange | Demat account, through a SEBI-registered broker |
| Electronic Gold Receipt (EGR) | A receipt for physical gold held in a vault, notified as a security | On a stock exchange, through a registered intermediary |
| Gold derivatives | Exchange-traded commodity contracts on gold | Commodity trading account; meant for traders more than savers |
Physical gold is the other route, and it needs no regulator: a hallmarked coin or piece of jewellery in your own hands. See our coin and bar price guide and how to check the HUID.
Check the grams you are getting
Platforms set their own buying price. This shows how much 24K gold your money buys at today's IBJA benchmark after 3% GST, so you can compare it with what the app offers.
About 0.686 g of 24K gold at the benchmark
Your amount less 3% GST, divided by today's IBJA 999 rate. Compare it with the grams a platform shows before you pay; a big gap is the platform's price over the benchmark.
If you already hold digital gold
- Find out who holds the physical gold, and whether an independent trustee checks it.
- Read the terms on taking delivery as coins, and the charges for it.
- Note the gap between the buying and selling price on the same day. That is your cost of getting in and out.
- Keep statements of your holding outside the app.
We do not give investment advice, and nothing here tells you to buy or sell. Track the value of what you hold against today's gold rate.
Sources
- SEBI PR No. 70/2025, Caution to public regarding dealing in 'Digital Gold', 8 November 2025 (sebi.gov.in)
- SEBI FAQ on the Gold Exchange in India and Electronic Gold Receipts (sebi.gov.in)
Questions people ask
Is digital gold regulated by SEBI?
No. In its press release of 8 November 2025, SEBI said digital gold products are neither notified as securities nor regulated as commodity derivatives, and operate entirely outside its purview.
Is digital gold safe?
It carries risks that regulated gold products do not. SEBI said such products may expose investors to counterparty and operational risks, and that none of the securities-market investor protection mechanisms apply to them.
What are the SEBI-regulated alternatives to digital gold?
SEBI names three: gold ETFs offered by mutual funds, exchange-traded commodity derivative contracts, and Electronic Gold Receipts traded on stock exchanges. They are bought through SEBI-registered intermediaries.
Should I sell my digital gold?
That depends on your own situation, and we do not give investment advice. What is worth doing is reading the platform's terms on who holds the gold, how you can take delivery, and what happens if the platform shuts.