Sebi Proposes DigiLocker Integration to Streamline Asset Management

Sebi plans to integrate DigiLocker to enhance efficiency in securities management and reduce unclaimed assets. The proposals suggest providing demat and mutual fund statements on DigiLocker and notifying nominees of asset holdings upon investor demise, ensuring seamless transition of assets to rightful heirs.

In a move to enhance efficiency in the financial sector, the Securities and Exchange Board of India (Sebi) has proposed the integration of DigiLocker, a government-backed digital document storage service, into securities market processes. The initiative aims to reduce unclaimed assets while ensuring the smooth transmission of assets to rightful heirs.

Sebi's consultation paper suggests that depositories and mutual funds should offer demat and mutual fund statements via DigiLocker. This integration would also see KYC Registration Agencies sharing information about an investor's demise with the digital platform, facilitating asset management upon the passing of an investor.

With an aim to protect investor interests, DigiLocker would automatically notify nominees via SMS and email in the event of a death. Nominees can then access digital records to begin asset transmission, contacting relevant Asset Management Companies or Depository Participants as needed. Public comments on this proposal are open until December 31.

(With inputs from agencies.)