In a press release on the sidelines of the Nationwide Conclave on REITs & InvITs 2025 in New Delhi, Pandey mentioned Sebi’s gold rules have already been defined by a press launch. Gold funding may be finished both by ETFs (Change Traded Funds), which mutual funds provide, or by tradable gold securities. “These are the merchandise included within the regulated trade. So for now, we’re targeted solely on these merchandise,” Pandey mentioned on the sidelines of the occasion. The Sebi chief added that digital gold would not fall underneath its purview as it isn’t a safety.
In a press launch dated November 8, the capital markets regulator mentioned it has famous that a number of digital and on-line platforms are providing buyers the choice to put money into “Digital Gold” or “E-Gold” merchandise, typically positioning them as a substitute for bodily gold.
It is very important make clear that these digital gold merchandise aren’t the identical as Sebi-regulated gold merchandise. They’re neither notified as securities nor regulated as commodity derivatives, and due to this fact function totally outdoors Sebi’s regulatory framework.
It mentioned that buyers needs to be conscious that such merchandise might carry important dangers, together with counterparty and operational dangers. Additional, not one of the investor safety mechanisms accessible underneath the securities market framework apply to investments in Digital Gold or E-Gold merchandise. Sebi advises buyers to train warning whereas contemplating such choices, it added.
The absence of regulatory oversight means buyers might not have sturdy safeguards round redemption, conversion to bodily gold, assurance of vaulting, or transparency concerning the underlying gold backing these merchandise. The Sebi launch primarily serves as a reminder for purchasers to confirm the place and the way their gold is saved, making certain their investments stay safe and traceable.Additionally learn: Quiet itemizing, loud returns: Ather’s multibagger post-IPO rally brings windfall features for promoters as returns swell to three,220percentIn a separate growth, Tuhin Kanta Pandey additionally mentioned that Sebi is trying on the inclusion of REITs in indices in a calibrated method, signalling a contemporary push to broaden participation and deepen India’s comparatively younger REIT and InvIT ecosystem. He added that the market regulator will additional broaden the pool of liquid mutual funds to incorporate REITs and InvITs, underscoring the regulator’s intent to enhance market entry and liquidity.
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