New Delhi, 7:45 PM: India’s digital gold market is facing a fresh wave of uncertainty. Just weeks after SEBI’s November 8 advisory, the subject has been trending every single day. And now, a new statement from SEBI Chairman Tuhin Kanta Pandey, shared widely through a media video, has pushed confusion to a new level.
Speaking at the National Conclave on REITs & InvITs 2025, Pandey said digital gold and e-gold products do not come under SEBI’s jurisdiction, and the regulator is focused only on Gold ETFs, exchange-traded gold derivatives, and Electronic Gold Receipts (EGRs).
#WATCH | Delhi: On Digital Gold, SEBI Chairman Tuhin Kanta Pandey says, "Our gold regulations have already been explained through a press release. Gold investment can be done either through ETFs (Exchange Traded Funds), which mutual funds offer, or through tradable gold… pic.twitter.com/EhzmQwW9ZA
— ANI (@ANI) November 21, 2025
For millions of Indians who buy gold on UPI apps with small daily amounts, the message raised more doubts than answers.
Investors Say They Don’t Know Who to Trust Now
The timing couldn’t have been sharper.
Digital gold companies and UPI apps keep promoting their products as:
- “100% secure”
- “24K verified gold”
- “Insured and fully safe”
- “Partnered with trusted brands like Paytm, PhonePe, Jar”
- “Backed by MMTC-PAMP, SafeGold, Augmont”
Everything about the branding looks official.
The gold icons look official.
Even the checkout screens feel official.
On average, India sees ₹4,000 crore+ worth of digital gold buying annually through apps.
But SEBI’s fresh statement says the opposite — digital gold is unregulated.
That mismatch is exactly what’s making people nervous.
Why This Issue Exploded Again
Here’s how the tension kept building:
- Nov 08: SEBI issues a cautionary press release.
- Social media starts buzzing with doubts and warnings.
- Large institutions like Axis Bank begin winding down digital gold services.
- Digital gold companies start urging the government to provide a clear rulebook.
- The SEBI Chairman’s latest comment reopens the confusion all over again.
Every step widened the gap between app marketing claims and regulatory reality.
What SEBI Has Made Clear
SEBI has repeated the same message several times:
- Digital gold is not a SEBI-regulated product.
- It is not classified as a security.
- It is not treated as a commodity derivative.
- SEBI’s investor protection rules do not apply.
The regulator has pointed investors toward safer alternatives like:
- Gold ETFs
- Exchange-traded gold derivatives
- Electronic Gold Receipts (EGRs)
These are checked, monitored, and legally protected.
Where Each Gold Option Stands Today
| Product | Regulated By | Safety Level | Where It Exists |
|---|---|---|---|
| Digital Gold | No regulator | Low | UPI apps; partners like SafeGold / Augmont |
| Gold ETF | SEBI | High | Mutual funds, stock exchanges |
| EGR | SEBI | High | Exchange-backed vaults |
| SGB | RBI / Govt | Very High | Govt-issued, interest-paying |
Why Users Feel Misled
Many people assumed that if apps like Paytm, PhonePe, Google Pay, and Jar sell gold, it must be regulated.
But SEBI’s new statement makes one thing clear — these platforms may be trusted brands, but the product they are selling is still a private arrangement.
What Investors Should Choose Now
If you want gold exposure with safety + clarity + rules, SEBI recommends:
1. Gold ETFs
Ideal for short-term or flexible investing.
2. Electronic Gold Receipts (EGRs)
Physically backed, exchange-verified.
3. Sovereign Gold Bonds (SGBs)
Best long-term option with government guarantee + interest.
Industry Now Knocking Govt’s Door for a Regulator
After the back-to-back developments, digital gold companies are now reaching out to the Ministry of Finance, IBJA, and policy groups in Delhi. They are asking the government to officially regulate digital gold so that trust doesn’t collapse.
Some companies say they’re ready to come under SEBI. Others are preparing for a Self-Regulatory Organisation (SRO) if no regulator is appointed soon.
For now, everyone is waiting to see whether digital gold finally gets a formal rulebook — or continues operating in a grey zone while investor confusion grows.
