SEBI Partners with DigiLocker to Secure Investors' Assets

SEBI has teamed up with DigiLocker to minimize unclaimed assets in India's securities market. This allows investors to store demat and mutual fund details, enhancing asset management. The initiative includes provisions for nominating heirs to access documents post-death, facilitating asset management and transmission.

The Securities and Exchange Board of India (SEBI) announced a new partnership with DigiLocker, a government-supported digital document storage platform, as part of efforts to reduce unclaimed assets in the securities market and improve investor protection.

Through this collaboration, investors can now store and access information concerning their demat and mutual fund holdings efficiently using DigiLocker, thus benefiting themselves and their families. The system allows users to retrieve and maintain statements for shares and mutual fund units from demat accounts, in addition to their Consolidated Account Statement (CAS).

In a move to ensure smoother management of assets posthumously, DigiLocker users can designate nominees, who will be notified via SMS and email upon the user's death, thereby streamlining the asset transmission process. This initiative seeks to address dormant accounts and simplify the transmission norms within the financial market by mandating entities like asset management companies to register with DigiLocker by April 1, 2025.

(With inputs from agencies.)