The Securities and Exchange Board of India (SEBI) has recently issued a strong warning to investors about the growing trend of “Digital Gold” investments. Despite the popularity of platforms offering the convenience of buying gold online, the regulator has clarified that digital gold is not covered under India’s securities or commodity framework.
This development has sent ripples across the investment community — especially with big names like Tanishq and MMTC-PAMP involved in the trade. While the topic revolves around finance, it also highlights a valuable lesson for entrepreneurs and marketers: the importance of trust, transparency, and education — principles that also drive successful digital marketing strategies for small businesses.
Let’s explore what SEBI’s warning means, how it impacts investors, and what small businesses can learn from this in terms of online marketing, credibility, and long-term growth in 2025 and beyond.
What Is Digital Gold?
Digital gold refers to a form of investment where individuals buy gold online — in small denominations — through apps, fintech platforms, or websites. Instead of physical delivery, the gold is held securely by the provider in vaults, and investors can redeem it later.
Companies like Tanishq, MMTC-PAMP, and Augmont have made digital gold accessible to retail investors through platforms like Paytm, Google Pay, and PhonePe.
However, SEBI’s concern lies in the fact that these offerings operate outside its regulatory framework — making them potentially risky for investors who assume that all online financial products are safe and SEBI-regulated.
SEBI’s Warning Explained
In its official notice, SEBI stated:
“It has come to the notice of SEBI that some digital or online platforms are offering investors to invest in ‘Digital Gold or E-Gold Products’. Such products are neither notified as securities nor regulated as commodity derivatives.”
This means that:
Digital gold is not under SEBI’s supervision.
It doesn’t fall under the Securities Contracts (Regulation) Act, 1956.
Nor is it governed by commodity derivatives regulations.
Hence, there is no investor protection mechanism if things go wrong.
SEBI’s warning echoes the regulator’s responsibility to protect retail investors — similar to how a marketer must ensure consumer safety, authenticity, and compliance when promoting digital products or services.