SEBI asks investment advisors to refrain from dealing in digital gold

Capital markets regulator Sebi has asked investment advisers to refrain from dealing in digital gold, which is an unregulated product. This came after Sebi noted that some registered investment advisers are engaged in unregulated activity by providing a platform for buying, selling or dealing in unregulated products including digital gold. SEBI further said any dealing in unregulated activities by investment advisers may entail action under the Sebi Act and regulations framed thereunder. 
In August, the National Stock Exchange (NSE) had directed its members, including stockbrokers, to discontinue the sale of digital gold on their platforms by September 10. The direction came after the capital markets regulator noted that certain members are providing a platform to their clients for buying and selling digital gold.The SEBI statement assumes significance as the recent past has seen an exponential rise in the number of Indians trading in products like Bitcoins and other cryptocurrencies along with NFTs and digital gold. Some of the new-age investment and advisory platforms also offer facilities wherein individuals can buy digital assets, which are quite popular with the young and first-time investors especially millennials.