SEBI Partnership with DigiLocker

SEBI Partners with DigiLocker to Reduce Unclaimed Assets in the Indian Securities Market as part of it, SEBI has issued a circular on 19th Mar 2025.

Objective : 

Harnessing DigiLocker as a Digital Public Infrastructure for Reducing Unclaimed Assets in the Indian Securities Market” to address the issue of unclaimed financial assets. 

This initiative enables investors to store and access information on their demat and mutual fund holdings through DigiLocker, a key Digital Public Infrastructure, benefiting investors and their families.

Key Highlights of the Initiative:

1. Access to Securities Holdings : 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 the existing DigiLocker services, which already include bank account statements, insurance policy certificates, and NPS account statements.
2. Nomination Facility for Seamless Access: Users can appoint Data Access Nominees within the DigiLocker application. In the event of the user's demise, these nominees will be granted read-only access to the DigiLocker account, ensuring that essential financial information is easily accessible to legal heirs.
3. Automated Notification to Nominees: Upon notification of the user’s demise by KYC Registration Agencies (KRAs) — which are registered with and regulated by SEBI — the DigiLocker system will automatically notify the Data Access Nominees. This access is expected to facilitate the initiation of the transmission process with the relevant financial institutions.
4. Role of KYC Registration Agencies (KRAs): At this stage, KRAs will serve as the primary source for verifying and triggering notifications to Data Access Nominees, ensuring a smooth transition process. SEBI and DigiLocker Collaboration: SEBI and DigiLocker are committed to enhancing investor protection through this initiative. By facilitating seamless access to financial records, this mechanism helps minimize unclaimed assets and ensures the identification of assets that might otherwise remain unnoticed.

Conclusion:

The collaboration between SEBI and DigiLocker marks a significant advancement in addressing the longstanding issue of unclaimed financial assets in the Indian securities market.

The streamlined process of securely storing and accessing the demat and mutual fund holdings and automated notifications to Nominees simplifies asset transmission. Overall, this initiative leverages digital public infrastructure to safeguard investor interests, promote financial inclusion, and strengthen the integrity of India’s securities ecosystem

Thanks,

Honvest Team,

Source : SEBI Circular