Mumbai: Self has warned Investment Advisors helping clients invest digital gold equipment as these are not regulated by it. In early August this year, stock exchanges warned brokers not to deal in digital gold.
Digital gold products are electronic receipts that prove investment by investors in the yellow metal but not the actual gold. Instead, the original sellers of such digital gold investment products keep the physical gold in the vault. This product is similar to Gold Exchange Traded Fund (ETF) units. But, unlike ETFs launched by fund houses and regulated by SEBI, digital gold realizations are yet to receive regulatory approval.
It has come to the notice of SEBI that some registered investment advisors are engaged in unregulated activity by providing a platform to buy/sell/deal with unregulated products including digital gold. “Such unregulated activity, including dealing in digital gold (i.e. advisory, distribution and execution/implementation services) by investment advisors is not in accordance with the regulations,” SEBI said through a press release on Thursday.
The market regulator advised investment advisors to avoid such irregular activities. In August, through a release, the NSE had said that some of its members may allow their clients to buy and sell digital gold, under the rules and regulations of SEBI. providing the platform. .
Earlier, SEBI had informed exchanges that facilitating trading in digital gold is in violation of securities laws. The exchange asked its members to stay away from such activities and the members who were engaged in such trading were asked to stop it by September 10.
Digital gold products are electronic receipts that prove investment by investors in the yellow metal but not the actual gold. Instead, the original sellers of such digital gold investment products keep the physical gold in the vault. This product is similar to Gold Exchange Traded Fund (ETF) units. But, unlike ETFs launched by fund houses and regulated by SEBI, digital gold realizations are yet to receive regulatory approval.
It has come to the notice of SEBI that some registered investment advisors are engaged in unregulated activity by providing a platform to buy/sell/deal with unregulated products including digital gold. “Such unregulated activity, including dealing in digital gold (i.e. advisory, distribution and execution/implementation services) by investment advisors is not in accordance with the regulations,” SEBI said through a press release on Thursday.
The market regulator advised investment advisors to avoid such irregular activities. In August, through a release, the NSE had said that some of its members may allow their clients to buy and sell digital gold, under the rules and regulations of SEBI. providing the platform. .
Earlier, SEBI had informed exchanges that facilitating trading in digital gold is in violation of securities laws. The exchange asked its members to stay away from such activities and the members who were engaged in such trading were asked to stop it by September 10.
.