Headline Summary
SEBI (the market regulator) issued a public caution on Nov 8, 2025 saying many “digital gold” products sold on apps and websites are not regulated and can be risky.
Quick Context
Lots of apps let you buy tiny amounts of gold online — sometimes for ₹10 or ₹100. These apps say they keep the gold in a vault. SEBI looked at these offers and told the public: these products are not treated as securities or regulated commodity contracts, so SEBI does not supervise them. That’s why SEBI warned people to be careful.
Examples of platforms/applications where these “digital gold” purchases can be made:
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PhonePe (offers digital gold via its app)
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Tanishq Digital Gold (via its website/app)
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MMTC PAMP Digital Gold platform
Impact Analysis
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People may lose money if the app/company fails.
If the company shuts down or lies about holding gold, you may not get your money or gold back. SEBI says these products can have big counter-party and operational risks. -
There is no SEBI safety net for these products.
Regulated investments (like mutual funds or gold ETFs) have rules, audits and protections. Digital gold on some apps may not have those protections. -
Small, casual buys are less risky than big amounts — but still not totally safe.
If you buy ₹100 for fun or gift, the damage is small. But if you put a big sum, risk is higher because there’s less legal protection. -
Safer alternatives exist (use these for big/long-term money):
• Gold ETFs (buy through your Demat account)
• Sovereign Gold Bonds (SGBs) (issued by the government)
These are regulated and have clearer protections.
FinsetWealth Insight
My simple advice (easy actions you can do today):
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If you have small digital-gold amounts (₹100–₹500), it’s OK to keep for now — but don’t add more.
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If you’ve invested a large amount, check the platform: who holds the vault, are there independent audits, what is the redemption policy? If answers are unclear, consider moving the money to Gold ETFs or SGBs.
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Remember this rule: “If it’s not regulated, treat it as risky.” Use digital gold only for tiny, short-term use (gifts or experiment), not for core savings or goals.
Closing Line:
Stay tuned with FinsetWealth’s Finance Buzz for clear, simple updates — because understanding small rules today keeps your money safe tomorrow.
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