Digital India: With the aim of providing relief to stock market and mutual fund investors, the Securities and Exchange Board of India (SEBI) has taken a new initiative in collaboration with DigiLocker. Now, investors can keep their demat and mutual fund holdings information safe in DigiLocker and can easily access it whenever they want. The special thing is that if something untoward happens to the investor, then his family will also be able to easily access this information.For this, investors will get the facility to make a nominee in DigiLocker. Investors will be able to avail this facility from
April 1.
What is DigiLocker and SEBI’s new initiative?
DigiLocker is a government digital platform designed to secure and share documents digitally. SEBI has now decided to use it to access the financial records of investors. Under this, investors will be able to store information about shares and mutual fund holdings from their demat accounts in DigiLocker. Apart from this, investors will also get access to their Consolidated Account Statement (CAS).
Main features of this initiative
1. Important documents can be stored in DigiLocker
2. Now important information like demat account statement, mutual fund units, and consolidated account statement (CAS) can also be saved in DigiLocker.
This will eliminate the need for paper documents for investors and they will be able to access their information securely from anywhere. Apart from this, there will also be a facility to add a nominee, which will make it easier for the family to access any document and gather investment and other financial information.
Easy access to securities holdings
Digi Locker users can now store information of shares and mutual fund units from their demat accounts directly on the platform. This facility adds a new dimension to the services already available like bank account statements, insurance policy certificates and NPS account statements. Digi Locker users will get the option to add a data access nominee. If the investor i.e. Digi Locker user dies, then his nominee will be given read-only access to the Digi Locker account information. This will also make it easier for legal heirs to access financial information.
Automatic notification
Upon receipt of information about the death of the user, SEBI registered KYC Registration Agencies (KRAs) will inform the DigiLocker system. After this, the notification will be automatically sent to the nominee. This process will help initiate the asset transmission process with financial institutions. KRAs will play an important role in this process. They will confirm the demise of the user and communicate the information to the nominee, so that the transition process can be done smoothly.
How is it beneficial for investors
The biggest advantage of this initiative is that it will reduce the problem of unclaimed financial assets. It often happens that after the death of investors, their families are not able to get the correct information about their financial assets. Through DigiLocker, it can now be ensured that all the necessary documents are easily available. Apart from this, giving direct access to the nominee will make the property transmission process faster and transparent. This will save the legal heirs from facing unnecessary hassles.
SEBI and DigiLocker have jointly taken this step to enhance the security of investors. Its aim is to ensure that there is no lapse in tracing any financial asset. This initiative will bring relief not only to investors but also to their families.
What changes can be seen in the future?
This initiative is going to be implemented from April 1, 2025. After this, investors will have ease in accessing their financial documents digitally. Also, the possibility of other digital reforms by SEBI will also increase, which will improve the experience of investors.
How will the simple process work?
Investors will log in to their DigiLocker account.
They will be able to access details of shares and mutual fund units from their demat accounts.
They can choose to add a nominee.
The nominee will be informed by KRAs upon the demise of the user.
The nominee will have access to the required documents.
Tips for investors
1. If you have not started using DigiLocker yet, adopt it soon.
2. Make sure to make your family or legal heir a nominee.
3. Keep your financial records updated regularly so that your family does not face any trouble in any situation.
This new initiative of SEBI and DigiLocker has brought a big change for Indian investors. This will not only keep their financial assets safe but their families will also get the necessary information at the right time. This move will play an important role in furthering the Digital India campaign and protecting the interests of investors.
Safe and transparent investment process
This move by SEBI is not only a relief for investors but also aims to reduce the number of unclaimed assets. The facility of keeping secure digital records in DigiLocker, eliminating the need for physical documents, and providing automated access to information to the nominee, all these steps will enhance the protection of investors’ interests.
Investors advised to take advantage of DigiLocker
SEBI has advised all investors to use DigiLocker and add their nominee.Now is the time for investors to store their information safely in digital form and also make their families aware of its benefits. Under this new rule which is going to come into effect from April 1, 2024, investors can keep their mutual fund and demat information safe in DigiLocker and can also link their family to it.