SEBI Partners with DigiLocker to Reduce Unclaimed Assets and Strengthen Investor Protection

The Securities and Exchange Board of India (SEBI) has partnered with DigiLocker to streamline access to investors’ securities holdings and reduce unclaimed assets in the Indian securities market. This initiative enables investors to store and retrieve their demat holdings, mutual fund statements, and Consolidated Account Statements (CAS) through DigiLocker, ensuring seamless access to financial information. Additionally, SEBI has introduced a nomination facility that allows investors to appoint legal heirs for smooth asset transition, facilitated by KYC Registration Agencies (KRAs). This move aims to enhance investor protection and financial transparency while minimizing unclaimed assets.

Key Highlights

DigiLocker’s Role in Financial Asset Management

• Investors can now store and access statements of their demat holdings, mutual fund investments, and CAS in DigiLocker.
• Expands existing DigiLocker services, which already include bank statements, insurance policies, and NPS account statements.

New Nomination Facility for Legal Heirs

• Investors can now appoint Data Access Nominees within DigiLocker.
• In case of the user’s demise, nominees receive read-only access to financial documents.
• This ensures a smooth transition of assets to rightful heirs.

Automated Notification System for Nominees

• SEBI-regulated KYC Registration Agencies (KRAs) will notify nominees upon the user’s death.
• DigiLocker will automatically grant nominees access, enabling them to initiate asset transfer procedures.

Role of KYC Registration Agencies (KRAs)

• KRAs act as verifiers and notification providers for nominee access.
• Ensures faster, hassle-free asset transition in case of an investor’s demise.

Investor Benefits

• Minimizes unclaimed assets in the securities market.
• Enhances investor protection and transparency in financial asset management.
• Reduces legal complexities for legal heirs in asset retrieval.

SEBI’s Commitment to Investor Protection

• Strengthens digital financial infrastructure through DigiLocker integration.
• Encourages more investors to digitally manage their financial holdings.
• Ensures seamless asset transition without lengthy legal processes.