InvestorQ : Can you tell me about the recent decision by NSE to ban sale of digital gold by brokers? What happens to the digital gold I bought?
Debbie Mascarenhas made post

Can you tell me about the recent decision by NSE to ban sale of digital gold by brokers? What happens to the digital gold I bought?

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diksha shah answered.
4 months ago
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That is correct. Under instructions from SEBI, the NSE has instructed to all its members and stock brokers registered with NSE, to discontinue sale of digital gold. Most brokers were selling digital gold which was dematerialized gold held in lieu of physical gold where the actual gold reserves were purported to be kept in a ring-fenced locker with a leading government owned or sponsored agency like MMTC.

However, SEBI has contended that the members of a stock exchange selling digital gold was not in sync with the provisions of the Securities Contract Regulation Act or SCRA. Hence, all such members selling digital gold on their platforms, have desisting from selling digital gold from 10 September. SEBI had a concern that there was no way to physically verify if the digital ownership rights were backed by ring-fenced gold deposits or not.

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