In a promising move to enhance investor protection and financial transparency, the Securities and Exchange Board of India (SEBI) is collaborating with DigiLocker, a government-backed digital document storage platform. Starting from April 1, 2025, investors will be able to securely store and access their demat holdings, mutual fund statements, and consolidated account statements (CAS) through DigiLocker. This partnership aims to tackle the long-standing issue of unclaimed financial assets in the Indian securities market by offering a convenient, centralised solution for managing financial documents.
Through this initiative, investors can store their financial documents safely on a platform that offers the same legal validity as original documents under the Information Technology Act, 2000. The integration of DigiLocker also addresses a critical need for smoother inheritance processes. Investors can appoint Data Access Nominees who will receive read-only access to their DigiLocker accounts upon the investor’s passing, making it significantly easier for heirs to access essential financial information without facing bureaucratic hurdles. By simplifying the process of asset transition, SEBI aims to substantially reduce the volume of unclaimed securities in the market and promote better financial management for investors and their families.
This collaboration between SEBI and DigiLocker represents a forward-looking approach towards financial transparency and investor protection. By making asset management more accessible and reducing the chances of financial assets getting lost or left unclaimed, this initiative encourages more investors to participate confidently in the digital economy. With enhanced accessibility and a simplified inheritance process, the SEBI-DigiLocker initiative could be a game-changer in improving overall financial awareness and security for countless Indian investors.
