Digital Gold Sales drop after SEBI's Ban on Stockbrokers

by Kundan Gold Private Limited Digital Gold Buying Platform

SEBI, i.e., Securities Exchange Board of India has banned the sales of digital gold via Stockbrokers recently But, why is there a ban on digital gold investments? What will happen to the existing customers in digital gold, and most importantly, what’s the way forward?

Digital gold is an electronic form of investment instrument that is popular among investors in the past few years. It is an affordable form of investment where one can begin investing for as low as Re. 1.

Why Did SEBI Ban Digital Gold Sales?

The process began after SEBI informed the National Stock Exchange that the activity related to digital gold sales is in contravention of Securities Contracts Rules, 1957 in August 2021. Therefore, people involved in buying and selling digital gold should refrain from those activities.

National Stock Exchange (NSE) has asked wealth managers and stockbrokers to stop the sale of digital gold from 10th September 2021. The orders came directly from the Securities and Exchange Board of India as it does not come under SEBI.

In simple terms, SEBI has no control and regulation over digital gold. Therefore, this organization does not want any of its organising bodies to participate in digital gold sales.

Also, SEBI does not view digital gold as a broking business. So, it is concerned about the misuse of clients’ money by brokers. It is also concerned about the over-allocation of virtual assets. That’s why it thinks that there is a need to keep track of companies selling and buying digital gold.

What Will Happen to Current Customers of Digital Gold?

After Coronavirus had put everything on a stall, digital gold sales had picked up. But, after the ban, digital gold prices have dropped by 5%. Naturally, the investors are concerned about their status.

If you have invested in digital gold via Stockbroker, there are a few options for you. The first option is selling your position and exiting the digital gold market. The second option is getting physical gold in exchange for digital.

Moreover, owners of digital gold will get a virtual certificate that will back their ownership. So, it is safe to say that your digital gold investment is totally safe after the ban.

What Will Happen Next?

People investing in digital gold are also concerned about the future of this market. The good news is that some new rules around digital gold are expected, which will further make investment a quick and hassle-free process.

Currently, SEBI has not updated the ban rules. So, the existing rule will be active for the time being. Also, it has clarified how the sales of third-party products are possible.

Alternate Way for Investing in Digital Gold

After the ban, multiple jewelers have started and are planning to start their digital gold. This is done to encourage young customers to easily buy 24k gold online without getting overwhelmed.

MyGoldKart is one of the most trusted options that has made the sales of digital gold available for customers. This platform was founded in May 2020 by Mr. Vidit Garg.

MyGoldKart comes from the house of Kundan Group, a leading company operating for more than two decades. This company has a influential name in the gold industry. It works with experienced backend teams and uses updated technology to generate the best results.

Kundan Group has its supreme presence in different components of gold value, like mining, designing, manufacturing, and refining. Through the years, this company has evolved and improved to become the best version of itself.

In May 2020, Kundan Group started MyGoldKart to stay in sync with the latest technology and trends. As a new-age gateway to digital investment, MyGoldKart strategically curates investment options for customers, so they can easily access the interface.

Along with gold, this platform also lets you invest in digital silver. MyGoldKart is a proud Kundan Group heritage that also acts as a personal investment plan. This plan helps people to understand the real-time digital gold price.

The SEBI-regulated independent trustee partner of this platform, IDBI trustee, offers complete protection and security. It also ensures the safe transit of assets through a trusted logistic partner named BVC Logistics. Furthermore, this platform uses encryption and advanced technology to keep your investment safe.

Therefore, MyGoldKart is one of the safest and most reliable ways of investing in 99.99% pure 24K digital gold