SEBI warns retail investors not to invest in unregulated digital gold..!
The regulator SEBI has noticed that some digital
platforms are offering gold investments that fall outside the purview of the
market regulator.
SEBI
has warned retail investors against investing in digital gold offered by
unregulated online platforms.
The
SEBI had noticed that some online platforms are selling “digital gold” or
“e-gold” as an investment alternative to physical gold. The regulator has
clarified that such products are not recognized as securities or regulated as
commodity derivatives.
SEBI
said it has already allowed investment in gold through regulated products such
as Gold ETFs, Gold Savings FoF Funds (Investing in Gold ETFs) commodity
derivative contracts, and Electronic Gold Receipts (EGRs).
The
SEBI warned that there are serious risk for investors who opt to purchase gold
on these platforms, saying that none of the investor protector mechanism will
be available for them, “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.
The
regulator advised the retail investors to invest only in SEBI-regulated gold
products and check the credentials of intermediaries before making any
investment.
For more details and investment in Gold Savings Funds FOF..!
Mr. K P Venkatarama
Krishnan,
Founder, Viruksham
Finmart Private Ltd
Chennai
E - Mail:
kpvenkat02@gmail.com
Cell Number: 98410
34997
Read articles written by Mr. K P Venkatarama Krishnan in Nanayam
Vikatan, a leading personal finance magazine.
Disclaimer: Mutual Fund investments are subject to market risks, read all scheme
related documents carefully. The past performance of the mutual funds is not
necessarily indicative of future performance of the schemes.
