The Securities and Exchange Board of India (SEBI) is considering a proposal to use DigiLocker to transfer financial assets when an investor passes away.
DigiLocker is a government-run digital storage system that will securely hold the financial assets of investors, including shares and mutual fund units, stored in Demat accounts.
This will make it easier for the investor’s nominee or heir to access and manage these assets.
How the Transfer Process Will Work
According to SEBI’s proposal, important documents such as Demat account statements and mutual fund unit details will be stored on DigiLocker.
After the investor’s death, DigiLocker will automatically update the account and notify the nominee or heir.
This will allow the nominee to manage and transfer the financial assets, preventing them from becoming unclaimed.
SEBI’s aim is to make sure stocks and mutual funds are passed on smoothly to the rightful heir.
Public Suggestions Invited
SEBI has invited public suggestions on this proposal, with the deadline set for December 31, 2024.
The plan includes making Demat and mutual fund statements available on DigiLocker and having KYC Registration Agencies (KRAs) inform DigiLocker about the investor’s death.
DigiLocker users can also nominate someone to access their account in the event of their death.
