Investors can store and access their demat account statements and mutual fund holdings through DigiLocker beginning April 1.
The initiative will reduce unclaimed assets in the Indian securities market and enhance investor protection. DigiLocker users can now fetch and store their statement of holdings for shares and mutual fund units from their demat accounts, along with their Consolidated Account Statement (CAS).
This expands the existing DigiLocker services, which already include bank account statements, insurance policy certificates, and NPS account statements.
Further, users can add nominees to their DigiLocker accounts, allowing them access to the user’s documents after their demise. This helps family members or legal heirs manage the deceased’s financial assets more easily.
Also, the DigiLocker system can update the status of a user’s account upon their demise using information from a death certificate or details provided by KYC Registration Agencies (KRAs).
After the user’s death, DigiLocker automatically notifies the nominated individuals (DigiLocker Nominees) via SMS and email, helping them manage the deceased’s assets. This access is expected to facilitate the initiation of the transmission process with the relevant financial institutions.
Asset management companies (AMCs), RTAs, and depositories would register with DigiLocker to allow investors to fetch their mutual fund and demat account details. Through this, Sebi aims to reduce unclaimed assets in the securities market by addressing issues such as dormant accounts, lack of contact or bank details, and simplifying transmission norms. DigiLocker is a government-backed digital document storage platform.
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