Home India FINANCE Parliament Question: Regulation of Digital Gold in India...
Date: 2025-12-15 Category: Not Applicable State: Union Government Country: India

Parliament Question: Regulation of Digital Gold in India

Issued by FINANCE · Not Applicable

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Executive Summary & Key Takeaways

**Executive Summary** This document is a response to an unstarred question in Lok Sabha regarding the regulation of digital gold in India, answered on December 15th, 2025. It outlines the government's current position on digital gold, clarifying that specific data on entities dealing in digital gold, and the amount purchased by Indian citizens is not maintained. It also highlights SEBI's caution to the public regarding digital gold. **Key Points / Main Content** * **Data on Digital Gold:** * The government does not maintain details regarding entities registered for the sale/purchase of digital gold, especially those based in foreign countries. * The government does not maintain details regarding the total amount of digital gold purchased by Indian citizens. * **Consumer Grievances:** * State-wise details of consumer grievances related to digital gold received on the National Consumer Helpline from 2020 to November 2025 (Annexure-I) are provided. * **Awareness Campaigns:** * The government has not launched specific campaigns/initiatives to increase awareness regarding digital gold. * SEBI issued a press release on November 8th, 2025, providing information regarding investments in gold-related financial products (Annexure-II). * **SEBI's Caution Regarding Digital Gold:** * Digital gold products are different from SEBI-regulated gold products and are not notified as securities nor regulated as commodity derivatives. * Digital gold products operate outside SEBI's purview and may entail significant risks for investors. * Investor protection mechanisms under securities market purview are not available for investments in digital gold/E-Gold products. **Impact Analysis** **Consumers / Investors** * **Impact:** * Gaining awareness of the government's lack of specific data on digital gold transactions. * Understanding SEBI's caution regarding the risks associated with investing in digital gold products that are not regulated. * **Action Required:** * Exercise caution when investing in digital gold and be aware of potential risks. * Consider investments in SEBI-regulated gold products. **Securities and Exchange Board of India (SEBI)** * **Impact:** * The document highlights SEBI's role in informing the public about the risks associated with unregulated digital gold investments. * **Action Required:** * Continue monitoring digital gold platforms and informing investors about associated risks. **Digital Gold Platforms/Providers** * **Impact:** * Increased scrutiny and potentially decreased investor confidence due to the lack of regulation and SEBI's caution. * **Action Required:** * Ensure investors are aware of the risks associated with their products and the lack of regulatory oversight. **Government of India / Ministry of Finance** * **Impact:** * The document clarifies the government's current data collection and awareness efforts regarding digital gold. * **Action Required:** * Consider whether to establish specific data collection processes and regulatory frameworks for digital gold.

Key Entities Referenced

Digital Gold: Subject of the parliamentary question regarding regulation, consumer grievances, and awareness campaigns. Securities and Exchange Board of India (SEBI): Regulatory body that has issued a press release regarding investments in gold-related financial products and warning about risks in unregulated digital gold products. Ministry of Finance: The ministry responding to the parliamentary question about Digital Gold. National Consumer Helpline: Platform where consumer grievances related to digital gold are recorded. Andhra Pradesh: State specifically mentioned in the question regarding digital gold purchases and complaints.
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GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS LOK SABHA UNSTARRED QUESTION NO. 2403 TO BE ANSWERED ON MONDAY, 15TH DECEMBER 2025 Regulation of Digital Gold in India 2403: Shri Magunta Sreenivasulu Reddy: Shri G M Harish Balayogi: Shri Putta Mahesh Kumar: Will the Minister of Finance be pleased to state: a) the details regarding the list of entities registered with the Government and/or its agencies that carry out sale and purchase of digital gold, especially those that are based in foreign countries; b) the details regarding the total amount of digital gold purchased by Indian citizens during the last five years especially in Andhra Pradesh, State-wise; c) the details regarding the total number of complaints received by the Government regarding the sale/purchase of digital gold in the country during the last five years and especially from Andhra Pradesh, State-wise; and d) whether the Government has launched any campaigns/initiatives to increase awareness regarding digital gold, if so, the details thereof and if not, the reasons therefor? ANSWER MINISTER OF STATE IN THE MINISTRY FOR FINANCE (SHRI PANKAJ CHAUDHARY) (a) & (b): No such details are maintained by the Government. (c): The State-wise details of consumer grievances related to digital gold received on the National Consumer Helpline during 2020 to 2025 (till Nov 25), including from the State of Andhra Pradesh, are given in the Annexure-I. (d): The Government has not launched any campaigns or initiatives specifically to increase awareness regarding digital gold. However, the Securities and Exchange Board of India has issued a press release dated 08th November, 2025 providing information to the public regarding investments in gold-related financial products. The press release is placed at Annexure-II. *****Annexure-I State-wise details of consumer grievances related to digital gold received on the National Consumer Helpline during 2020 to 2025 (till November 2025) S.No. State/UT 2020 2021 2022 2023 2024 2025 (Till Grand Nov'25) Total 1 Delhi 5 6 6 7 4 10 38 2 West Bengal 0 4 6 8 13 6 37 3 Uttar Pradesh 1 2 3 10 8 13 37 4 Maharashtra 1 3 13 3 7 8 35 5 Telangana 4 2 5 5 3 11 30 6 Karnataka 0 3 9 2 5 9 28 7 Haryana 1 5 2 5 1 6 20 8 Gujarat 0 3 7 3 2 2 17 9 Andhra Pradesh 2 1 2 1 4 7 17 10 Kerala 0 3 1 2 5 6 17 11 Madhya Pradesh 0 1 6 3 0 6 16 12 Punjab 0 0 3 4 1 5 13 13 Tamil Nadu 1 1 1 0 2 7 12 14 Rajasthan 0 2 1 1 3 5 12 15 Bihar 0 4 3 3 0 0 10 16 Assam 1 0 0 4 3 2 10 17 Odisha 0 0 0 0 3 3 6 18 Jammu & Kashmir 0 1 0 0 4 0 5 19 Uttarakhand 0 1 0 0 0 2 3 20 Jharkhand 0 0 1 0 0 2 3 21 Himachal Pradesh 0 0 2 0 0 0 2 22 Chandigarh 1 0 0 0 0 0 1 23 Chhattisgarh 0 0 0 0 0 1 1 24 Goa 0 0 0 0 0 1 1 Grand Total 17 42 71 61 68 112 371Annexure-II PR No.70/2025 SEBI has enabled investments in gold and gold related instruments through various SEBI regulated gold products. These are exchange traded commodity derivative contracts, Gold Exchange Traded Funds (ETFs) offered by Mutual Funds and Electronic Gold Receipts (EGRs) tradeable on stock exchanges. Investments in these SEBI regulated gold products can be made through SEBI registered intermediaries and are governed by the regulatory framework prescribed by SEBI. It has come to the notice of SEBI that some digital/online platforms are offering investors to invest in ‘Digital Gold/E-Gold Products’. Digital Gold is being marked as an alternative for investment in physical gold. In this context, it is informed that such digital gold products are different from SEBI regulated gold products as they are neither notified as securities nor regulated as commodity derivatives. They operate entirely outside the purview of SEBI. Such digital gold products may entail significant risks for investors and may expose investors to counterparty and operational risks. Investors / participants are made aware that none of the investor protection mechanisms under securities market purview shall be available for investments in such Digital Gold/ E-Gold products. Mumbai November 08, 2025

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