IBJA moves to set rules for digital gold firms as SEBI regulation remains uncertain

Wed Dec 03 2025

The India Bullion & Jewellers Association (IBJA) has begun creating a self-regulatory framework for digital gold companies as industry players await clarity on potential oversight from the Securities and Exchange Board of India (SEBI).

Surendra Mehta of IBJA said the association had earlier asked SEBI to bring digital gold under regulation. “We requested SEBI to regulate these digital gold companies,” he said, noting that most players are established firms with strong balance sheets.

The IBJA framework will cover standards and operations across the value chain. “We will set the entire framework for the digital gold companies regarding purity standards, vaulting, how the payment is to be collected, how taxes are to be paid, how auditing is to be done,” Mehta said. IBJA will call a consultation meeting and only firms that follow the rules may join the system.

Mehta estimates that the number of primary digital gold companies is limited. “This primary companies number will not exceed even 12 or 13,” he said. He added that IBJA will also bring intermediaries into the fold to ensure that consumer payments reach the primary digital gold firms.

The size of the market remains unclear. Mehta said actual data is difficult to verify, especially with many proprietorship and partnership firms still operating in the space. Excluding these, he estimates the market to not exceed 20 tonne.

Mehta also commented on the rise in gold imports this year. He said import volumes are high due to jewellers increasing stock ahead of the wedding and

festival season. He cautioned that if working capital is being diverted into gold inventory and the USD/INR goes above 90, it could become a concern.

IBJA expects digital gold activity to expand under clearer rules, while monitoring risks from currency volatility and rising imports.

Source: https://www.cnbctv18.com