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SEBI and DigiLocker Join Hands to Reduce Unclaimed Assets Securities Market

Written by: Team Angel OneUpdated on: Mar 20, 2025, 2:25 PM IST
SEBI has partnered with DigiLocker to help investors store and access their demat and mutual fund holdings, reducing unclaimed assets.
SEBI and DigiLocker Join Hands to Reduce Unclaimed Assets Securities Market
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To enhance investor protection and reduce unclaimed assets in the Indian securities market, the Securities and Exchange Board of India (Sebi) has collaborated with DigiLocker, a government-backed digital document storage platform. 

This initiative will allow investors to securely store and access their demat and mutual fund holdings, ensuring better financial asset management for them and their families.

Simplifying Access to Financial Holdings

Under this partnership, 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 DigiLocker’s existing services, which already include bank account statements, insurance policies, and NPS account details.

To streamline financial asset management, Sebi has directed asset management companies, registrars and transfer agents (RTAs), and depositories to register with DigiLocker. This integration will enable investors to access their securities details conveniently, reducing issues such as dormant accounts and a lack of updated contact or bank information.

Enhancing Transmission and Nomination Processes

DigiLocker now allows users to add nominees to their accounts, ensuring that their legal heirs can access important financial documents after their demise. The system can update a user’s account status upon receiving death certificate information from KYC Registration Agencies (KRAs).

Upon the user’s death, DigiLocker will automatically notify the nominated individuals via SMS and email, facilitating the transmission process with financial institutions. By simplifying the handling of deceased investors’ assets, Sebi aims to minimise unclaimed securities and improve the efficiency of inheritance processes.

Conclusion

With this initiative, Sebi seeks to modernise investor services and significantly reduce unclaimed assets in the securities market. By integrating DigiLocker into the financial ecosystem, investors can better manage their holdings, ensuring seamless access and transmission of assets to their rightful heirs. The circular will come into effect from April 1, 2025.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

 

Published on: Mar 20, 2025, 2:25 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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