Legal information notice: this article provides general information and isn't a substitute for advice from a qualified lawyer.
An app or a WhatsApp message offers “digital gold” at a discount, a “guaranteed” monthly gain, or an exclusive festive scheme. You pay online, see gold credited in an account — and later cannot sell, withdraw or even reach anyone. Digital gold sits in a regulatory grey zone in India, which is exactly why fraud thrives around it. Knowing what protection you do and don’t have is the first step.
In November 2025, SEBI issued a public caution on “digital gold” and “e-gold” products sold through online platforms. It stated that these offerings are not notified as securities and are not classified as commodity derivatives, so they fall outside SEBI’s regulatory oversight. It highlighted counterparty risk (your protection depends on the private company), operational risk (no standardised verification, independent custody assurance or audits), and the absence of grievance redressal such as SEBI’s SCORES platform. SEBI pointed investors who want gold exposure towards regulated routes — Gold ETFs, Gold Exchange Traded Commodity Derivative contracts, and Electronic Gold Receipts — through registered intermediaries.
A new “storage fee”, “GST” or “verification deposit” to release gold is a sign of fraud, not a step in a legitimate sale.
Screenshot your holdings, purchase receipts, transaction IDs, the platform’s name, website address and support chats. Save invoices or certificates you received.
Report the payments and request that further debits be blocked. Give the receiving account or UPI details.
Use cybercrime.gov.in or 1930, attaching all evidence and payment details.
If the company is real and traceable, send a written complaint by email or registered post; it builds a record and can support a later consumer complaint.
Because digital gold is unregulated, SEBI’s complaint platform is not available for it. Your main routes are the criminal complaint for fraud and, against a traceable company, a civil or consumer complaint for deficiency in service — where a lawyer’s guidance is useful.
| Regulated Route | Digital Gold Offer |
|---|---|
| Gold ETFs, ETCDs and EGRs traded or held through registered intermediaries | A private app or seller holds the gold on your behalf |
| Investor grievance channels such as SEBI SCORES | No SEBI redress; you depend on the company |
| Transparent pricing on exchanges | Prices and 'discounts' set by the seller |
| No promised returns | 'Guaranteed' gains or bonus grams |
No. Reporting to your bank and the cyber crime portal is free.
You can file the police complaint yourself. A lawyer helps if the company is traceable and you want to send a legal notice or pursue a consumer or civil claim.
Need professional legal help with this?
Find a Lawyer on VidyodaySee related guides on investment and trading scams, Ponzi schemes, and filing a cyber crime complaint.
SEBI has said digital gold and e-gold products are not notified as securities or commodity derivatives, and so are outside its regulation.
SEBI points to regulated routes: Gold ETFs, Gold Exchange Traded Commodity Derivative contracts, and Electronic Gold Receipts, through registered intermediaries.
SEBI has said investors in digital gold do not have access to its grievance mechanisms such as SCORES. Use the police, the cyber crime portal and, where possible, a written complaint to the company.
Warning signs include discounts well below market price, guaranteed returns, no verifiable company details, and fees to withdraw or sell.
It depends on how quickly you report and whether the company and accounts are traceable. Recovery is not guaranteed.
Not necessarily. Physical gold sold by a jeweller differs from “digital gold” held by a platform. Check exactly what you are buying and who holds it.
This article is for general information only and does not constitute legal or financial advice. Regulatory positions can change — check SEBI’s latest communications before investing.
