Even digital gold platforms promote buying gold online as an easy and convenient option for as little as Rs 10. But the market regulator SEBI has warned investors about potential risks.
In a statement, SEBI advised caution against investing in Digital Gold products available through various online platforms. It noted that these products not regulated under the securities market framework and carry notable risks.
SEBI warns the investors over unregulated ‘digital gold’ investments
A press release highlighted that some digital or online platforms are allowing investors to purchase ‘Digital Gold or E-Gold Products. SEBI pointed out that these digital gold products differ from the gold products regulated by SEBI.
They operate entirely outside SEBI’s oversight. The regulator show that such digital gold products pose significant risks for investors. It expose them to counterparty and operational risks.
What Tanishq says about digital Gold?
SEBI also warned that none of the investor protection mechanisms available in the securities market apply to investments in these Digital Gold or E-Gold products.
As more investors show interest in buying or investing in gold, many online platforms emerged offering such products, that not regulated by SEBI.
Tanishq states on its website that “Tanishq Digital Gold is a trusted and transparent method of purchasing 24 Karat pure gold. It help you start your golden savings journey with the trust of Tata and powered by SafeGold.” It adds that investors or customers can start with as little as Rs 100 and can exchange Digital Gold at any time or at over 350 Tanishq stores throughout India.
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