SEBI Partners with DigiLocker to Streamline Asset Access and Reduce Unclaimed Securities

The Securities and Exchange Board of India (SEBI) has introduced a significant initiative to address the issue of unclaimed financial assets in the securities market. By collaborating with DigiLocker, SEBI aims to enhance investor protection, facilitate seamless access to financial records, and simplify the transition of assets to legal heirs.

𝐊𝐞𝐲 𝐃𝐞𝐯𝐞𝐥𝐨𝐩𝐦𝐞𝐧𝐭𝐬

1. 𝐈𝐧𝐭𝐞𝐠𝐫𝐚𝐭𝐢𝐨𝐧 𝐰𝐢𝐭𝐡 DigiLocker: Investors can now securely store and retrieve demat holdings, mutual fund statements, and Consolidated Account Statements (CAS) on DigiLocker, alongside existing financial documents such as bank statements and insurance policies.
2. 𝐍𝐨𝐦𝐢𝐧𝐚𝐭𝐢𝐨𝐧 𝐅𝐚𝐜𝐢𝐥𝐢𝐭𝐲 𝐟𝐨𝐫 𝐒𝐦𝐨𝐨𝐭𝐡 𝐀𝐬𝐬𝐞𝐭 𝐓𝐫𝐚𝐧𝐬𝐢𝐭𝐢𝐨𝐧: Investors can designate Data Access Nominees within DigiLocker. In the event of the investor’s demise, these nominees will receive read-only access to relevant financial records, ensuring that investments do not remain unclaimed or unidentified.
3. 𝐀𝐮𝐭𝐨𝐦𝐚𝐭𝐞𝐝 𝐍𝐨𝐭𝐢𝐟𝐢𝐜𝐚𝐭𝐢𝐨𝐧 𝐭𝐨 𝐍𝐨𝐦𝐢𝐧𝐞𝐞𝐬: SEBI-regulated KYC Registration Agencies (KRAs) will notify DigiLocker upon an investor’s demise, triggering an automatic SMS and email alert to the nominee. This mechanism facilitates a structured and transparent asset transmission process.

𝐄𝐧𝐡𝐚𝐧𝐜𝐢𝐧𝐠 𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫 𝐏𝐫𝐨𝐭𝐞𝐜𝐭𝐢𝐨𝐧

Unclaimed assets often result from unsuccessful dividend or interest payments, or from family members being unaware of existing investments. SEBI‘s initiative seeks to:
(a) Minimize unclaimed securities by ensuring visibility of financial holdings.
(b) Provide legal heirs with direct and timely access to key financial records.
(c) Leverage digital public infrastructure for efficient asset tracking and retrieval.

𝐍𝐞𝐱𝐭 𝐒𝐭𝐞𝐩𝐬

SEBI has mandated that Asset Management Companies (AMCs), Depositories, and KRAs register with DigiLocker by April 01, 2025, allowing investors to seamlessly fetch their holding statements and transaction details.

Investors are encouraged to register on DigiLocker, link their investment accounts, and appoint a nominee to ensure a smooth asset transition process. This proactive step will provide an added layer of security and convenience for investors and their families.

A copy of the Circular is enclosed.