New Delhi:

Markets regulator Sebi on Wednesday partnered with DigiLocker, a government-backed digital document storage platform, to reduce unclaimed assets in the Indian securities market and enhance investor protection. The initiative will help investors store and access information on their demat and mutual fund holdings through DigiLocker benefiting investors and their families.

Further, users can add nominees to their DigiLocker accounts, allowing them access to the user's documents after their demise. This helps family members or legal heirs manage the deceased's financial assets more easily. Also, the DigiLocker system can update the status of a user's account upon their demise using information from death certificates or details provided by KYC Registration Agencies (KRAs).

Under this, DigiLocker users can now fetch and store their statement of holdings for shares and mutual fund units from their demat accounts, along with their Consolidated Account Statement (CAS), Sebi said in a circular. This expands the existing DigiLocker services, which already include bank account statements, insurance policy certificates, and NPS account statements.

Sebi has directed asset management companies (AMCs), RTAs, and depositories to register with DigiLocker to allow investors to fetch their mutual fund and demat account details. KRAs will also share information on investor deaths with DigiLocker. Through this, Sebi aims to reduce unclaimed assets in the securities market by addressing issues such as dormant accounts, lack of contact or bank details, and simplifying transmission norms.

After the user's death, DigiLocker automatically notifies the nominated individuals (DigiLocker Nominees) via SMS and email, helping them manage the deceased's assets. This access is expected to facilitate the initiation of the transmission process with the relevant financial institutions.

Sebi has encouraged to use DigiLocker and specify nominees to help manage their financial assets upon death and avoid unclaimed assets. The circular would come into effect from April 1, 2025, the Securities and Exchange Board of India (Sebi) said. In December, the regulator floated a consultation paper proposing to use the government's DigiLocker system to reduce unclaimed assets in the securities market.

Read More : 

Sensex, Nifty Surge In Early Trade Powered By Rally In IT Stocks