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      Question

      According to the SEBI advisory issued on 8 November

      2025, which of the following statements most accurately describes the regulatory status of Digital Gold (E-Gold) products offered by various fintech platforms in 2026?
      A They are regulated as Prepaid Payment Instruments (PPI) by the RBI. Correct Answer Incorrect Answer
      B They are classified as Securities under the SCRA and regulated by SEBI. Correct Answer Incorrect Answer
      C They are protected under the SEBI Investor Protection and Education Fund (IPEF). Correct Answer Incorrect Answer
      D They are jointly regulated by the Ministry of Consumer Affairs and SEBI. Correct Answer Incorrect Answer
      E They operate entirely outside the regulatory purview of both SEBI and RBI Correct Answer Incorrect Answer

      Solution

      SEBI has explicitly cautioned that digital gold products are neither notified as securities nor regulated as commodity derivatives. Consequently, they operate outside the formal financial regulatory framework, meaning standard investor protection mechanisms and grievance redressal channels provided by SEBI or RBI do not apply to these products.  The regulated products related to gold include: ·        Sovereign gold bonds – regulated by RBI ·        Gold ETFs – regulated by SEBI ·        Gold commodity derivatives – regulated by SEBI ·        Electronic Gold Receipts (EGRs) - regulated by SEBI

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