NE BUSINESS BUREAU
NEW DELHI, MAR 19
The Securities and Exchange Board of India (SEBI) has partnered with the government’s digital document wallet, DigiLocker, to address the growing issue of unclaimed assets in the securities market.
- DigiLocker now supports demat holdings, mutual fund statements and Consolidated Account Statement (CAS)
- Launches nomination facility for legal heirs with SEBI-Regulated by KYC Registration Agencies (KRAs) ensuring smooth asset transition
The Securities and Exchange Board of India (SEBI) has on Wednesday issued a circular titled “Harnessing DigiLocker as a Digital Public Infrastructure for Reducing Unclaimed Assets in the Indian Securities Market” to address the issue of unclaimed financial assets. This initiative enables investors to digitally store and retrieve details of their demat and mutual fund holdings, ensuring easier access for them and their legal heirs.
Key Highlights of the Initiative
Access to Securities Holdings
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). This expands the existing DigiLocker services, which already include bank account statements, insurance policy certificates, and NPS account statements.
Nomination Facility for Seamless Access
Users can appoint Data Access Nominees within the DigiLocker application. In the event of the user’s demise, these nominees will be granted read-only access to the DigiLocker account, ensuring that essential financial information is easily accessible to legal heirs.
Automated Notification to Nominees
Upon notification of the user’s demise by KYC Registration Agencies (KRAs) — which are registered with and regulated by SEBI — the DigiLocker system will automatically notify the Data Access Nominees. This access is expected to facilitate the initiation of the transmission process with the relevant financial institutions.
Role of KYC Registration Agencies (KRAs)
At this stage, KRAs will serve as the primary source for verifying and triggering notifications to Data Access Nominees, ensuring a smooth transition process.
SEBI and DigiLocker collaboration
SEBI and DigiLocker are committed to enhancing investor protection through this initiative. By facilitating seamless access to financial records, this mechanism helps minimize unclaimed assets and ensures the identification of assets that might otherwise remain unnoticed.