The Securities and Exchange Board of India (SEBI) has proposed a new initiative to help address the problem of unclaimed assets in the capital markets by integrating investor details with DigiLocker. This move aims to make the process of claiming unclaimed assets easier and more efficient for investors and their nominees.
SEBI has introduced a proposal to integrate investors’ demat and mutual fund holdings with DigiLocker. DigiLocker, a secure digital platform, allows users to store important documents and other identity proofs. With this integration, investors will be able to access their demat and mutual fund holdings digitally, making it easier for them to keep track of their investments.
In a discussion paper released recently, SEBI proposed that depositories and mutual funds provide statements of investors’ holdings in DigiLocker. This will help streamline the process of tracking and claiming unclaimed assets, ensuring that investors have all their financial records in one place.
A key feature of this proposal is the ability for DigiLocker users to assign a nominee to their account. In case of the investor’s death, the nominee’s status will be automatically updated using data from the Registrar General of India or the KYC Registration Agencies (KRA) system. This update will trigger an automatic notification to the nominee through SMS and email, informing them of the deceased investor’s unclaimed assets.
The nominee can then access the digital information stored in the DigiLocker and begin the process of claiming the assets. To do this, they will need to approach the concerned Asset Management Companies (AMCs) or depository participants.
SEBI is seeking public feedback on this proposal. Investors, financial institutions, and other stakeholders are invited to provide their suggestions and comments by December 31. This is part of SEBI’s initiative to improve the proposal and make sure it addresses the requirements of all parties involved.
