SEBI Bans Investment Advice On Digital Gold And Cryptocurrency

In an announcement made on October 21, the Securities and Exchange Board of India (SEBI) stated that investment advisors are prohibited from advising on unregulated instruments.

This effectively prohibits investment advisors from providing advice on cryptocurrencies, digital gold, and other unregulated products.

“It has come to the attention of the Securities and Exchange Board of India (SEBI) that some registered investment advisers are engaged in unregulated activity by providing a platform for the purchase, sale, and trading of unregulated products, including digital gold,” the market regulator stated.

It went on to say that providing advisory, distribution, execution, or implementation services in unregulated instruments does not comply with the provisions of Section 12(1) of the SEBI Act, 1992, which prohibits such activities.

In a statement, the SEBI stated that “investment advisers are hereby advised to refrain from engaging in such unregulated activities,” and that any dealing in unregulated activities could result in legal action under the SEBI Act, 1992.


What is Digital Gold, and how does it work?

Digital gold is a method of purchasing yellow metal that does not require the buyer to handle it physically. You can make a quick and simple purchase from the comfort of your own residence. It’s also secure because it’s backed by a Trustee who has been approved by the SEBI. The smallest amount that can be purchased or sold is one rupee. On weekends and holidays, you can buy and sell gold at any time of day or night, seven days a week, including holidays.

What is cryptocurrency, and how does it work?

Bitcoin, the world’s first cryptocurrency, was created with the goal of serving as a payment system for people who use the internet to conduct their transactions. We are able to move more quickly, at a lower cost, and with greater independence from the whims of any government or central bank. You can purchase cryptocurrencies on peer-to-peer networks and cryptocurrency exchanges such as Coinbase and Bitfinex, among other places. Always keep an eye out for transaction fees, as some of these exchangers charge exorbitant fees for even the smallest cryptocurrency purchases.

Earlier this month, the National Stock Exchange (NSE) issued an order to its members, which included stockbrokers, requiring them to cease selling digital gold on their platforms by September 10.

The directive was issued after the capital markets regulator discovered that some members were providing their clients with a platform to buy and sell digital gold, which prompted the directive.

Advisors on investment matters are now being warned to avoid engaging in such unregulated activities. Dealing in unregulated activities by Investment Advisers may result in disciplinary action under the Securities and Exchange Board of India Act, 1992, and the regulations promulgated under the Act.

Recent Articles

digital currency

Finance Ministry Plans To Create Legal Framework For CBDCs Based On RBI’s Proposal

The Crypto Currency Bill is in talks in the ongoing Winter Session of the parliament. The Bill is said to demarcate more regulations for...

China Crypto Leader Huobi Selects Singapore For Asia HQ

The cryptocurrency market is taking the world by storm and it is high time that the global market started accepting crypto as a valid...

Here’s What CEO Parag Agrawal Told Twitter Employees In His First Email

There has been a change of leadership at the Twitter headquarters and the entire world cannot stop raving about it. The news got so...

Kazakhstan is experiencing widespread power shortages, which are being blamed on cryptocurrency mining

Kazakhstan's electricity demand increased by nearly 8% year on year this year. Curiosity is a vital component of inquiring minds. When a large number...

Bitcoin Mining Is Driving People Insane in Quebec: Why Is Crypto So Noisy?

Bitcoin and cryptocurrency are extremely popular right now, and while the mining process is not environmentally friendly, it is extremely profitable for miners and...

Related Stories


Please enter your comment!
Please enter your name here

Stay on op - Ge the daily news in your inbox