SEBI on Thursday barred registered investment advisors (RIAs) from advising or facilitating investments in unregulated products like digital gold.
"It has come to the notice of SEBI that some registered Investment Advisers are engaged in unregulated activity by providing platform for buying/ selling/ dealing in unregulated products including digital gold," SEBI said in a circular. "Investment Advisers are, hereby, advised to refrain from undertaking such unregulated activities," the regulator added.
In August, SEBI raised concerns over the sale of digital golds calling it the breach of the Securities Contracts (Regulation) Rules (SCRR), 1957. Following which India's top stock exchanges asked their members to stop sale of digital gold on their platforms.
Digital gold is a virtual way of investing in the gold metal without worrying about the storage cost and the quality of the gold. Many online platforms have been offering the investment option for the past few years.
