How Sebi's move to integrate DigiLocker will reduce unclaimed assets

MUMBAI: Many mutual fund holdings go unclaimed because investors either fail to document them properly or do not inform their family members. To address this, the Securities and Exchange Board of India (Sebi) has introduced a mechanism that integrates mutual fund statements with DigiLocker, enabling nominees to access investment details when needed.

The initiative is aimed at reducing unclaimed assets in the securities market, ensuring that family members of deceased investors are promptly informed of their holdings.

DigiLocker, a government-backed digital document wallet, stores Aadhaar, PAN, driving licence, and insurance policies. By adding mutual fund statements and demat holdings to the platform, the markets regulator is enabling investors to consolidate their financial documents in one secure location.

Sebi has directed asset management companies (AMCs) and registrars to register as issuers on DigiLocker, allowing investors to fetch their latest mutual fund statements seamlessly.

Investors first need to register on DigiLocker and link their Aadhaar for authentication. Once registered, they can fetch their mutual fund statements by linking their mutual fund investments and demat accounts to their DigiLocker profile. This enables automatic updates of their financial holdings. Additionally, investors can nominate beneficiaries by providing the nominee’s mobile number and email ID.

Upon the demise of the investor, DigiLocker automatically notifies the registered nominee via SMS and email. After completing identity verification, the nominee can access the deceased investor’s mutual funds and demat holdings, allowing them to claim the investments.

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