by SEBI has introduced a crucial initiative to reduce unclaimed assets (UA) by integrating DigiLocker into the financial ecosystem. Often, investments remain unclaimed as families are unaware of them. This move ensures easy tracking and smooth transmission of assets.
What is DigiLocker?
DigiLocker is a government-backed digital wallet where you can securely store documents like Aadhaar, PAN, mutual fund (MF) holdings, and demat statements. Documents stored here hold legal validity under the IT Act, 2000.
How Does This Benefit Investors?
All investments in one place – MF and demat holdings will be visible in a single account.
~ Nomination facility – Add a nominee to simplify future claims.
~ Easy access after death – If an investor passes away, the nominee gets an automatic SMS & email.
~ Smooth transmission – The nominee can verify their identity and claim assets directly.
SEBI’s Guidelines for Market Participants
~Mutual fund AMCs, RTAs, and depositories must register as “Issuers” in DigiLocker.
~Investors can view holding statements, the last 30 days’ transactions, and their 12-month CAS.
~KYC Registration Agencies (KRAs) must update DigiLocker on an investor’s death.
What Happens After an Investor’s Death?
~Death records will be updated via Government Death Records (RGI) or KRA system.
~The nominee receives an SMS & email and can access the deceased’s investment details.
~If the nominee is officially registered in MF/Demat, they can directly claim the assets. Otherwise, legal heirs must apply for transmission.
What Should Investors Do?
>Register on DigiLocker and add a nominee.
>Convert physical securities to Demat for better access.
When Does This Start?
The circular comes into effect from April 1, 2025.
Final Thoughts
This initiative is a game changer. By using DigiLocker, investors can easily track their investments, and their families can access financial assets without hassle. No more unclaimed investments – just secure, hassle-free asset transmission! 🚀
Disclaimer:
This article is for informational purposes only and does not constitute financial, legal, or investment advice. Readers should consult with financial experts or refer to official SEBI notifications for detailed guidance. The author and publisher are not responsible for any decisions based on this content.
