The Securities and Exchange Board of India has teamed up with DigiLocker to reduce unclaimed assets in the Indian securities market. As part of the initiative, SEBI is allowing investors to store and access details of their demat holdings, mutual fund statements and consolidated account statements through DigiLocker.
The information was shared by the market regulator in a circular titled "Harnessing DigiLocker as a Digital Public Infrastructure for Reducing Unclaimed Assets in the Indian Securities Market". On March 19, the Ministry of Electronics & IT announced that DigiLocker now supports storing securities holdings, appointing nominees, and automating notifications through KYC Registration Agencies for smooth asset transfers.
By supporting demat holdings, mutual fund statements and CAS for users, DigiLocker will act as a one-stop-shop for seamless access to financial records.
The platform already supports the storage of other key details, such as bank account statements, insurance policy certificates and NPS account statements.
Steps To Check Demat Statement On DigiLocker:
Log in to DigiLocker: Visit the DigiLocker website and log in with your credentials.
Click on "Issued Documents" on the left of the dashboard.
Search for your depository service provider. For example, KFin Technologies Ltd.
Click on the tab and press the ‘mutual fund statement' section.
Enter the PAN card details and tick the consent box.
You will get a consolidated document of your holdings.
Another key feature of this initiative is the launch of the nomination facility being provided for legal heirs. This move is aimed at reducing unclaimed assets in the Indian market.
"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," the ministry explained.
DigiLocker, a government-backed digital document wallet, allows secure storage of government-issued documents like Aadhaar, PAN, and Driving Licence.
What Happens After A DigiLocker User's Demise?
SEBI has released a detailed circular, outlining the steps that would be taken to facilitate the assets of a DigiLocker user after their demise.
Updation of User Status upon Demise: The DigiLocker system will update the status of the demise of its user, from either of the following sources:
Source 1: The Register of Deaths from the Registrar General and Census Commissioner
Source 2: Verified demise information and death certificate from KRA systems, which manage the centralised mechanism for reporting the death of investors.
Intimation to DigiLocker Nominee(s) upon Demise:
Step 1: DigiLocker automatically notifies the nominee(s) of the user's demise via SMS and email.
Step 2: Nominee(s) can access the deceased user's digital information through their own DigiLocker account after authenticating their identity.
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