SEBI, DigiLocker team up to cut unclaimed assets, ease access to demat holdings

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.This collaboration allows investors to digitally store and retrieve details of their demat and mutual fund holdings, ensuring easier access for them and their legal heirs.
Under this initiative, DigiLocker users can now fetch and store their demat account holdings, mutual fund statements, and Consolidated Account Statements (CAS), SEBI said in a circular issued on Wednesday.
This expansion builds on DigiLocker’s existing capabilities, which include storing Aadhaar, PAN, driving licences, and insurance policy documents.To further streamline the inheritance process, SEBI has introduced a nomination facility within DigiLocker. Investors can designate a Data Access Nominee who will receive read-only access in case of the investor’s demise.

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KYC Registration Agencies (KRAs), regulated by SEBI, will serve as the primary verification source for notifying nominees and facilitating the transfer of assets.

SEBI emphasised that this initiative will not only improve investor protection but also significantly reduce unclaimed assets by ensuring seamless identification and access to financial holdings. Documents stored in DigiLocker hold the same legal standing as physical originals under the Information Technology Act, 2000.