Teji Mandi Explains: All you need to know about digital gold ban

Teji Mandi Explains: All you need to know about digital gold ban

Teji MandiUpdated: Thursday, September 02, 2021, 06:43 PM IST
article-image
Representative Image | Photo: Pexels

Short Description- The Securities and Exchange Board of India (SEBI) has prohibited the sale of digital gold from September 10.

SEBI in its clear statement has mentioned that digital gold doesn’t come under the definition of ‘securities’. There are no regulations around digital gold. It is not regulated by SEBI. This rule will strictly apply to members of the stock exchanges like brokerage, wealth managers etc. Any company that deals with stocks, commodities, derivatives etc., will not be allowed to sell digital gold.

Who Is Allowed To Sell Digital Gold Then?

Any company that doesn’t deal directly with securities can offer digital gold. Basically, online payment services and mobile wallets like GooglePay and PhonePe can offer digital gold to their customers. These companies do not fall under the purview of SEBI and thus are allowed to offer the product. Only members of the stock exchange (BSE and NSE) are prohibited from distributing digital gold on their platforms.

What Should Investors Do?

Now individuals who earlier bought digital gold can sell it immediately. The physical delivery can be taken from the broker before September 10. Post that, investors will have to deal directly with the manufacturer of the product, that is MMTC-PAMP, Augmont or Digital Gold India Pvt. Ltd.

Closing Comments

Digital gold has gained immense popularity in recent years as investors can buy gold, even if it’s worth Rs 10. This has made it a favourite asset for investors. The prohibition of digital gold doesn’t mean one can’t invest in it. There are other companies that will continue to offer the service. However, until SEBI recognizes it as a ‘security’, it will be prohibited for all members of the stock exchange.

RECENT STORIES

Indian Drug Makers Largely Shielded From US Tariff On Patented Medicines; Sun Pharma Most Exposed

Indian Drug Makers Largely Shielded From US Tariff On Patented Medicines; Sun Pharma Most Exposed

Gold, Silver May Extend Rally With US Jobs Data, Festive Demand In Focus: Analysts

Gold, Silver May Extend Rally With US Jobs Data, Festive Demand In Focus: Analysts

Bank Holidays In October 2025: Banks To Remain Closed For 21 Days Across Different Cities

Bank Holidays In October 2025: Banks To Remain Closed For 21 Days Across Different Cities

China Opens Doors For Indian Pharma With Zero Duty, Relief Arrives As US Shuts Out Imports With 100%...

China Opens Doors For Indian Pharma With Zero Duty, Relief Arrives As US Shuts Out Imports With 100%...

UPI Payment Rules To Change From November 3, Three Major Updates You Must Know

UPI Payment Rules To Change From November 3, Three Major Updates You Must Know