NRIs in UAE: How to invest in digital gold in India
Question: My relatives and friends in India are of the view that it is easy and profitable to invest in digital gold or e-gold products through online platforms. I want your views whether this is feasible and whether there are any risks involved in doing so.ANSWER: It is certainly feasible to make such investments but it must be noted that e-gold products on online platforms are not considered to be Government-permitted securities and therefore are not regulated by the Securities & Exchange Board of India. Hence, there is a definite risk that if an investor uses these platforms and suffers a loss, he would not be able to lodge a complaint with Sebi as its investor protection mechanism does not cover such transactions. It would therefore be advisable to invest only in regulated gold products which are gold Exchange Traded Funds (ETFs) offered by mutual funds. There are also Electronic Gold Receipts (EGRs) which can traded on stock exchanges. Investments in these regulated gold products can be made through Sebi registered intermediaries. Sebi has issued a warning to investors in respect of e-gold and digital gold products being sold by unregulated entities. These products are neither notified as securities nor regulated as commodity derivatives. Hence, they operate entirely outside the purview of Sebi regulations. The regulator has cautioned that such digital products will entail significant issues for investors and may expose them to counterparty and operational risks. In such a case, none of the investor protection mechanisms would be available.Question: With this year coming to an end on a volatile note, what are the prospects for 2026 both for Asia in general and India in particular?ANSWER: Asia’s solid economic fundamentals are based on robust export performance despite a global trade environment which has been clouded by levels of uncertainty. According to the Asian Development Bank, continued growth of trade and investments will be the key to sustainable development. China’s GDP growth in 2026 is estimated at 4.3 per cent and India’s growth has been projected at 6.5 per cent. The rate of growth for South East Asia is pegged at 4.6 per cent for 2026. For the current financial year ending on March 31, 2026, India’s growth rate of 7.2 per cent is based on rising domestic consumption supported by the reduction in the Goods and Services Tax. This has contributed to the expansion of the manufacturing and services sectors on the supply side and consumption and investment on the demand side. The forecast of the Asian Development Bank of 7.2 per cent of the GDP growth is less than what the Reserve Bank of India has projected, namely, 7.3 per cent for the fiscal year 2025-26. Stronger consumer demand is expected partly on account of a buoyant rural economy and steady credit growth. According to ADB, India’s growth is broadly balanced with downside risks emanating from trade tensions and climate changes. However, successful trade negotiations with the United States and the European Union will provide the upside in the coming months. Labour law reforms which have been initiated in India will also give a boost to the industrial sector and the decline in retail inflation rate will fuel consumer demand. HP Ranina is a practising lawyer, specialising in corporate and tax laws of India.Question: The setting up of Global Capability Centres in India has attracted attention worldwide. Will this lead to creation of additional jobs for technically skilled youngsters?ANSWER: Multinational corporations have already set up more than 1,800 Global Capability Centres in India and the demand for technically skilled manpower in the fields of artificial intelligence, product engineering, cyber security and related services has gone up manifold. In fact, the hiring of skilled engineers is more than four times the number of persons employed by IT services companies. GCCs are increasing their headcount by 25-27 per cent year on year compared to 5-6 per cent by IT services companies. Currently, 300,000 new jobs are created annually and employment data reveals that two million technically skilled employees are working for this sector. Apart from the creation of new jobs, there is a substantial demand for properties in key locations like Mumbai, Pune, Bengaluru, Gurgaon, Hyderabad and Chennai where GCCs are generally located. Recently, one of the largest property firms in the world has struck a multifaceted deal with the Mumbai Metropolitan Region Development Authority to develop Asia’s largest Global Capability Centre by 2029 which will result in the creation of 30,000 jobs. The same company is in the process of building a specialty tower in Pune for a financial services corporation which is setting up a GCC. The development includes a commitment to harness 100 per cent green power. The Global Capability Centre policy of the Maharashtra Government is designed to attract large scale-high value operations that will generate skilled e
Question: My relatives and friends in India are of the view that it is easy and profitable to invest in digital gold or e-gold products through online platforms. I want your views whether this is feasible and whether there are any risks involved in doing so.
ANSWER: It is certainly feasible to make such investments but it must be noted that e-gold products on online platforms are not considered to be Government-permitted securities and therefore are not regulated by the Securities & Exchange Board of India. Hence, there is a definite risk that if an investor uses these platforms and suffers a loss, he would not be able to lodge a complaint with Sebi as its investor protection mechanism does not cover such transactions. It would therefore be advisable to invest only in regulated gold products which are gold Exchange Traded Funds (ETFs) offered by mutual funds. There are also Electronic Gold Receipts (EGRs) which can traded on stock exchanges. Investments in these regulated gold products can be made through Sebi registered intermediaries.
Sebi has issued a warning to investors in respect of e-gold and digital gold products being sold by unregulated entities. These products are neither notified as securities nor regulated as commodity derivatives. Hence, they operate entirely outside the purview of Sebi regulations. The regulator has cautioned that such digital products will entail significant issues for investors and may expose them to counterparty and operational risks. In such a case, none of the investor protection mechanisms would be available.
Question: With this year coming to an end on a volatile note, what are the prospects for 2026 both for Asia in general and India in particular?
ANSWER: Asia’s solid economic fundamentals are based on robust export performance despite a global trade environment which has been clouded by levels of uncertainty. According to the Asian Development Bank, continued growth of trade and investments will be the key to sustainable development. China’s GDP growth in 2026 is estimated at 4.3 per cent and India’s growth has been projected at 6.5 per cent. The rate of growth for South East Asia is pegged at 4.6 per cent for 2026. For the current financial year ending on March 31, 2026, India’s growth rate of 7.2 per cent is based on rising domestic consumption supported by the reduction in the Goods and Services Tax. This has contributed to the expansion of the manufacturing and services sectors on the supply side and consumption and investment on the demand side.
The forecast of the Asian Development Bank of 7.2 per cent of the GDP growth is less than what the Reserve Bank of India has projected, namely, 7.3 per cent for the fiscal year 2025-26. Stronger consumer demand is expected partly on account of a buoyant rural economy and steady credit growth. According to ADB, India’s growth is broadly balanced with downside risks emanating from trade tensions and climate changes. However, successful trade negotiations with the United States and the European Union will provide the upside in the coming months. Labour law reforms which have been initiated in India will also give a boost to the industrial sector and the decline in retail inflation rate will fuel consumer demand. HP Ranina is a practising lawyer, specialising in corporate and tax laws of India.
Question: The setting up of Global Capability Centres in India has attracted attention worldwide. Will this lead to creation of additional jobs for technically skilled youngsters?
ANSWER: Multinational corporations have already set up more than 1,800 Global Capability Centres in India and the demand for technically skilled manpower in the fields of artificial intelligence, product engineering, cyber security and related services has gone up manifold. In fact, the hiring of skilled engineers is more than four times the number of persons employed by IT services companies. GCCs are increasing their headcount by 25-27 per cent year on year compared to 5-6 per cent by IT services companies. Currently, 300,000 new jobs are created annually and employment data reveals that two million technically skilled employees are working for this sector.
Apart from the creation of new jobs, there is a substantial demand for properties in key locations like Mumbai, Pune, Bengaluru, Gurgaon, Hyderabad and Chennai where GCCs are generally located. Recently, one of the largest property firms in the world has struck a multifaceted deal with the Mumbai Metropolitan Region Development Authority to develop Asia’s largest Global Capability Centre by 2029 which will result in the creation of 30,000 jobs. The same company is in the process of building a specialty tower in Pune for a financial services corporation which is setting up a GCC. The development includes a commitment to harness 100 per cent green power. The Global Capability Centre policy of the Maharashtra Government is designed to attract large scale-high value operations that will generate skilled employment and promote sustainable economic growth.
The writer is a practising lawyer, specialising in corporate and fiscal laws of India.
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