The Securities and Exchange Board of India on 21st October 2021 has directed investment advisers to abstain from trading in digital gold, an unregulated product.
SEBI has observed that certain registered investment advisers are engaging in unregulated activity by offering a platform for the purchase, sale, or trading of unregulated items, including digital gold.
Undertaking such unregulated activity including dealing (i.e., advisory, distribution, and execution/ implementation services) in digital gold by investment Advisers is not in accordance with the provisions of section 12(1) of the Sebi Act, 1992 read with the Sebi (Investment Advisers) Regulations, 2013.
Therefore, as a result, Sebi has advised the investment advisers to refrain from engaging in such unregulated activities.
