SEBI not considering any new digital gold framework: Tuhin Kanta Pandey
By Nikhil Dedha, New Delhi, November 21
SEBI Chairman Tuhin Kanta Pandey on Friday clarified that the regulator is not considering any new regulatory framework for digital gold at this stage.
Speaking to the media on the sidelines of National Conclave on REITs and InvITs-2025, Pandey said that gold-related investments can currently be made either through gold exchange-traded funds (ETFs) offered by mutual funds or through tradable gold securities. These are the products that fall within the regulated space, and SEBI continues to focus on these instruments for now.
"Our gold regulations have already been explained through a press release. Gold investment can be done either through gold investment ETFs, which mutual funds offer, or through tradable gold securities. These are the products included in the regulated space, so for now we are focused only on these products." Pandey said.
While addressing questions on gold, Pandey also highlighted the growing relevance of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) in India's financial markets.
Discussing the possibility of including REITs and InvITs in Indian market indices, he said such inclusion depends primarily on liquidity and asset under management (AUM) growth. "When liquidity improves and the size of the industry grows, the chances of these instruments being considered for index inclusion also increase," he noted.
Pandey added that MSCI India already includes these instruments, and Indian indices will also expand their coverage as the sector grows in line with industry requirements. He stressed that indices follow defined rules, and any inclusion happens strictly according to those rules. Once REITs and InvITs find a place in domestic indices, he said, it will further improve liquidity and help deepen the market.
He further highlighted that earlier, both REITs and InvITs were placed under the same category. However, for greater clarity and flexibility in mutual fund investments, SEBI has now separated their classification.
"For the purpose of mutual funds, we have said that REITs will now be classified as equity for mutual fund schemes, while InvITs will continue to remain under the hybrid category," he said. According to him, the revised classification will provide more clarity and offer additional elbow room to mutual funds to invest in these instruments.
— ANI
Reader Comments
As someone who invests in both gold ETFs and REITs, I appreciate SEBI's clear stance. The classification changes for mutual funds make sense - more clarity always helps retail investors like us make better decisions.
While I understand SEBI's caution, I wish they would consider regulating digital gold platforms. Many young investors prefer digital options for convenience. Hope they revisit this decision in the future. 🤔
The focus on REITs and InvITs is excellent! As an NRI investor, I've been watching this space closely. Better liquidity and index inclusion will definitely attract more foreign investment into Indian real estate and infrastructure.
Gold ETFs have served Indian investors well for years. Why complicate things with new digital frameworks when the existing system works perfectly fine? SEBI is taking the right approach here.
The separation of REITs and InvITs classification shows SEBI's progressive thinking. This will help mutual funds allocate more precisely and benefit end investors. Good regulatory move! 📈
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.