Purchasing gold and precious metals are considered conservative and a symbol of good fortune and wealth as the festive season approaches, with Dussehra, Dhanteras, and Diwali just around the corner.
The capital markets regulator has warned that financial advisors cannot trade in unregulated products, thereby barring them from delivering any official advice on new-age asset classes like cryptocurrencies, non-fungible tokens (NFTs), and digital gold.
“It has come to the notice of SEBI that some registered Investment Advisers are engaged in unregulated activity by providing a platform for buying/selling/dealing in unregulated products including digital gold,” stated a release by SEBI.
“Investment Advisers are, hereby, advised to refrain from undertaking such unregulated activities. Any dealing in unregulated activities by Investment Advisers may entail action as deemed appropriate under the SEBI Act, 1992 and regulations framed thereunder,” it added.
What is Digital Gold?
Digital gold is a method of purchasing yellow metal without having to physically handle it. You may purchase it quickly and effortlessly from the comfort of your own home. It’s also safe because it’s backed by a SEBI-approved Trustee. The minimum purchase or sale price is Re 1. You can buy and sell gold 24 hours a day, seven days a week, including weekends and holidays.
What is Cryptocurrency?
Bitcoin, the first cryptocurrency, was founded with the intention of serving as a payment system for the internet world. Faster, cheaper, censorship-resistant, and unaffected by the whims of any government or central bank Peer-to-peer networks and cryptocurrency exchanges like Coinbase and Bitfinex are where you can buy cryptocurrencies. Keep an eye out for fees, as some of these exchangers impose exorbitant fees for minor cryptocurrency purchases.
The National Stock Exchange (NSE) had issued an order in August to its members, including stockbrokers, to stop selling digital gold on their platforms by September 10.
The directive came after the capital markets regulator discovered that some members are offering their clients a platform to buy and sell digital gold.
Investment Advisers are now cautioned against engaging in such unregulated activities. Dealing in unregulated activities by Investment Advisers may result in action under the SEBI Act, 1992, and the regulations promulgated thereunder.
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Story first published: Friday, October 22, 2021, 12:42 [IST]
Original news source Credit: www.goodreturns.in