Regulatory Alerts2025-03-19
SEBI Circular on Harnessing DigiLocker to Reduce Unclaimed Assets in the Indian Securities Market
The Securities and Exchange Board of India (SEBI) has directed Asset Management Companies, Recognized Depositories, and KYC Registration Agencies to integrate with DigiLocker to prevent the creation of unidentified unclaimed assets in the securities market. Intermediaries are mandated to register as issuers on DigiLocker to allow investors to fetch holding and transaction statements, while KYC Registration Agencies must electronically share verified death information to trigger automatic status updates and nominee notifications. This mechanism aims to ensure that financial holdings are visible to legal heirs or nominees upon a user's demise, thereby facilitating timely transmission of assets and reducing the accumulation of unclaimed investments.