India’s Digital Gold Industry Gets Self-Regulatory Body To Enhance Consumer Protection
- 6 hours ago
- 2 min read
India’s digital precious metal industry has come together to establish the Digital Precious Metals Assurance Council of India (DPMACI), a self-regulatory organization aimed at improving transparency, governance standards and consumer protection across the growing digital gold and silver ecosystem.
Current members of DPMACI include major digital metal sellers and distributors such as MMTC-PAMP, SafeGold, Augmont, PhonePe, BharatPe, Mobikwik, Gullak, Lenden Club and CRED. The council aims to align industry participants under a common code of conduct and establish verification standards designed to strengthen consumer confidence.
The newly formed industry body will be chaired independently by public policy expert Nirupama Soundararajan and seeks to create a unified framework for operational integrity and accountability in India’s digital precious metals market.
Last year, Sebi warned investors who are investing in ‘Digital Gold/E-Gold products’ offered by digital/online platforms. It called these products ‘unregulated’ and ‘operate entirely outside the purview of Sebi’.
“…it is informed that such digital gold products are different from SEBI regulated gold products as they are neither notified as securities nor regulated as commodity derivatives," Sebi informed in the notification.
Focus On Audits, Physical Backing And Custodial Safety
According to the framework announced by DPMACI, all member platforms will be required to maintain a 1:1 physical backing of customer holdings in gold and silver. These holdings will undergo periodic audits conducted by independent audit firms to ensure that physical metal reserves match customer balances.
The organization stated that all holdings must conform to London, UAE or Indian good delivery standards. In addition, customer assets will be secured through independent custodians or vault operators, while norms related to storage, insurance and disclosures will also be standardized.
DPMACI added that customer funds will be routed through segregated accounts monitored by an independent trustee. The trustee structure is intended to safeguard customer assets even in the event of insolvency involving intermediaries servicing customers.
Ombudsman Framework And Industry Governance
The council also plans to establish an Ombudsman framework aimed at handling customer grievances within defined timelines. An official portal detailing governance practices, complaint redressal systems and compliance standards has already been launched.
Commenting on the development, Nirupama Soundararajan, Independent Chairperson of DPMACI, said the initiative marks a significant step toward building a transparent and sustainable digital precious metals ecosystem in India.
She said the council’s focus on independent audits, custodial safeguards and standardized practices would help reinforce market credibility while supporting long-term industry growth. The organization also intends to work closely with policymakers to promote best practices and strengthen trust in the sector.
Digital Metal Market Aligns With Global Standards
The launch of DPMACI comes amid rising adoption of digital gold and silver investment products in India. Industry participants said the move is designed to align the domestic market with established global frameworks through structured verification mechanisms and proactive compliance oversight.
With the introduction of common governance standards and consumer safeguards, the industry aims to create a more transparent and accountable environment for digital precious metal investors.
Comments