Introduction to DigiLocker and Unclaimed Assets

In a significant move to enhance investor protection and reduce unclaimed assets in the Indian securities market, the Securities and Exchange Board of India (SEBI) has partnered with DigiLocker, a government-backed digital document storage platform. This collaboration allows investors to store and access their demat and mutual fund holdings digitally, making it easier for them and their legal heirs to manage financial assets. In this article, we will explore how to check unclaimed assets in stocks and mutual funds using DigiLocker.

What is DigiLocker?

DigiLocker is a digital platform launched by the Government of India to store and verify documents electronically. It allows users to store important documents such as Aadhaar, PAN cards, driving licenses, and insurance policy certificates. With the recent integration with SEBI, DigiLocker now supports the storage of demat account statements and mutual fund holdings, making it a comprehensive digital wallet for financial documents.

Benefits of Using DigiLocker for Unclaimed Assets

The partnership between SEBI and DigiLocker offers several benefits:

• Easy Access to Financial Holdings: Investors can now store and retrieve their demat account holdings, mutual fund statements, and Consolidated Account Statements (CAS) directly through DigiLocker.
• Nomination Facility: Investors can designate a Data Access Nominee who will receive read-only access to their financial documents in case of their demise. This ensures that legal heirs can easily access and manage the deceased's financial assets.
• Reduced Unclaimed Assets: By providing a centralized platform for storing financial documents, DigiLocker helps reduce unclaimed assets by ensuring that nominees are notified and can access the necessary information to initiate the transmission process.

How to Check Unclaimed Assets in DigiLocker

To check unclaimed assets in stocks and mutual funds using DigiLocker, follow these steps:

1. Sign Up for DigiLocker:

• Visit the DigiLocker website or download the DigiLocker app.
• Sign up using your Aadhaar number or mobile number.
• Verify your account through OTP.

1. Link Your Demat and Mutual Fund Accounts:

• Once logged in, navigate to the "Issuers" section.
• Search for your depository participant (DP) or mutual fund company.
• Link your demat and mutual fund accounts by providing the necessary details.

1. Fetch and Store Holdings:

• After linking your accounts, you can fetch and store your demat account holdings and mutual fund statements in DigiLocker.
• Ensure that your Consolidated Account Statement (CAS) is also stored for comprehensive tracking.

1. Nominate a Data Access Nominee:

• Designate a nominee who will have read-only access to your financial documents in case of your demise.
• This ensures that your legal heirs can manage your assets smoothly.

1. Notification Process:

• Upon notification of your demise, DigiLocker will inform your nominated individuals via SMS and email.
• They can then access the stored documents and initiate the transmission process with the relevant financial institutions.

Key Features of DigiLocker for Securities

• Digital Storage: DigiLocker allows digital storage of financial documents, reducing the need for physical paperwork.
• Nominee Access: Nominees can access documents with read-only rights, preventing unauthorized transactions.
• Seamless Transmission: The platform facilitates easy transmission of assets by providing all necessary documents in one place.

Impact on Investor Protection

This initiative significantly enhances investor protection by ensuring that financial assets are not left unclaimed due to lack of awareness or access. By digitizing key financial documents and providing a nomination facility, SEBI and DigiLocker are making it easier for legal heirs to manage the financial assets of deceased individuals. This move is expected to reduce the quantum of unclaimed assets in the securities market, benefiting both investors and their families.

Conclusion

The partnership between SEBI and DigiLocker marks a significant step towards reducing unclaimed assets in the Indian securities market. By leveraging DigiLocker's digital capabilities, investors can now manage their financial holdings more efficiently, ensuring that their assets are protected and accessible to their legal heirs. As the financial sector continues to evolve digitally, initiatives like these will play a crucial role in enhancing investor protection and streamlining asset management.