The India Bullions & Jewellery Association (IBJA) has asked the Securities and Exchange Board of India (Sebi) to bring digital gold providers under a formal regulatory framework, The Economic Times reported. The development comes weeks after the markets regulator warned investors against investing in digital or e-gold products, stating that such instruments fall outside its regulatory framework and involve significant risks. The bullion, with its plea to come under the regulatory framework, hopes to dispel fears that the consumers are being duped. IBJA's national secretary Surendra Mehta said, "We have been approached by various digital gold companies and they have shown their willingness to be regulated either through Sebi or any other regulator, as suggested by the market watchdog."
He further noted that several digital gold products are backed by refiners approved by the Bureau of Indian Standards (BIS) and the National Accreditation Board for Testing and Calibration Laboratories (NABL). What did Sebi say? On November 8, the markets regulator issued the cautionary statement after it observed that some online platforms were promoting 'digital gold' or 'e-gold' products as an easy alternative to investing in physical gold.
