SEBI has directed its efforts towards minimizing the creation of Unclaimed Assets (UA) in the securities market to strengthen investor protection and reduce Unclaimed Assets (UA), SEBI has introduced several measures, including:
Guidelines for inactive/dormant accounts and folios,
Mandatory furnishing of contact and bank details,
Requirement for investors to either nominate a beneficiary or formally opt out,
Simplified transmission norms, and
A centralized system for reporting investor demise.
DigiLocker
To further address unidentified UA, SEBI proposes leveraging DigiLocker—a Government of India digital document wallet. Key aspects:
Stores important documents like Aadhaar, PAN, Driving License, and Death Certificate.
Recognized as equivalent to original documents under Section 9A of the IT Act, 2000.
Facilitates easy access and verification of investor documents.
Additional details on DigiLocker’s functionalities and benefits are provided in Annexure – A of the circular
The Government of India, through an office memorandum dated December 28, 2020, has mandated that all entities delivering citizen services must integrate with DigiLocker. Currently, documents such as bank account statements, insurance policies, and NPS statements are available in DigiLocker.
To enhance financial accessibility, SEBI proposes the inclusion of Mutual Fund (MF) and demat holding statements in DigiLocker, allowing individuals to consolidate all financial holdings within a single account.
DigiLocker Nominee
Users can nominate individuals to access their digital information after their demise.
While adding a nominee, the user must provide their mobile number and email ID.
This feature ensures that nominees can seamlessly retrieve critical financial documents, aiding in asset transmission.
Updation of status of DigiLocker User upon demise
DigiLocker will update a user’s demise status based on:
Register of Deaths maintained by the Registrar General and Census Commissioner (RGI).
Verified demise information and death certificate available with KRA systems, which manage the centralized reporting mechanism for deceased investors.
However, information shared by KRAs with DigiLocker will not be considered an ‘Issued document’.
Intimation to DigiLocker Nominee/s upon demise of DigiLocker User
Upon a user’s demise, DigiLocker will automatically notify the nominee(s) via SMS and email.
Nominees can access the deceased user’s digital information through their own DigiLocker account after identity authentication.
This mechanism helps nominees access financial asset details, aiding in the smooth transmission of assets.
Note: The nomination facility in DigiLocker does not override the transmission norms for Mutual Funds (MFs) or demat accounts. Illustrations on transmission differences are provided in Annexure – C
Directions to Securities Market Intermediaries
AMCs (Asset Management Companies), RTAs (Registrar & Transfer Agents), and Recognized Depositories must register with DigiLocker as ‘Issuers’.
This enables investors to retrieve:Holding statements (as of the previous day).Transaction statements (for the last 30 days).Consolidated Account Statement (CAS) (latest or from the last 12 months).
DigiLocker will allow users to automatically retrieve CAS every January 1st each year. Intermediaries may provide additional financial information through DigiLocker, beyond the mandatory requirementsKRAs (KYC Registration Agencies) must electronically share demise details of investors with DigiLocker. Data sharing must follow strict data safety measures, with technical details and modalities decided mutually between NeGD (National e-Governance Division), SEBI, and KRAs.
Advisory to InvestorsInvestors may consider becoming users of DigiLocker and also consider specifying nominee/s for the DigiLocker (over and above the nomination/s, if any, made in their demat account and MF folio).
Investors holding securities in physical mode, can also avail the beneficial measures envisaged in this circular by opting to de-materialize their holdings.
This circular shall come into effect from April 01, 2025.
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