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TMI BlogHarnessing DigiLocker as a Digital Public Infrastructure for reducing Unclaimed Assets in the Indian Securities MarketX X X X Extracts X X X X X X X X Extracts X X X X ..... ission, e) centralized mechanism for reporting demise of investor 2. With a view towards reducing unidentified UA [UA (Unclaimed Asset). Conventionally, a folio / account is identified as unclaimed when the dividend / interest payment is unsuccessful or the letter / cheque returns undelivered. Such criteria are ineffective if these payments get credited into the bank account of a deceased investor. The family member would not apply for transmission of the folio / account as they may not be aware of the investment in the first place. In such instance, the folio / account is not only unclaimed, but is also not identified as unclaimed - unidentified unclaimed assets. This circular is aimed at preventing the creation of unidentified unclaimed assets in mutual funds and demat accounts] in the Indian securities market, it is proposed to harness the prowess of digital public infrastructure (specifically Digital Locker mechanism i.e. 'DigiLocker') and of the KRAs registered with the Board. 3. DigiLocker 3.1. DigiLocker is digital document wallet of the Government of India (GoI), facilitating citizens in obtaining and storing documents like Aadhaar, PAN, Driving Licence, Death Cer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on about the financial assets being available to DigiLocker nominee/s and aid in transmission of the assets. 6.3. It is noted that the nomination mechanism in DigiLocker does not alter the norms governing transmission for the mutual funds or demat accounts. Do see an illustration of transmission to DigiLocker Nominee vis-à-vis Nominee of MF folio / demat account as provided in Annexure - C. 7. Directions to Securities Market Intermediaries 7.1. Accordingly, all AMCs (and their RTAs) and recognised Depositories are directed to register with DigiLocker as 'Issuer' so as to enable users / investors, at their own option, to fetch their; * holding statement, as of the date immediately preceding the date of fetching, or * transaction statements for the last 30 days of mutual fund units and demat accounts, respectively, in user's DigiLocker account. 7.1.1. the latest generated or last available Consolidated Account Statement (CAS) in the previous 12 months of the request. 7.1.2. Additionally, DigiLocker system shall also provide the user the option to fetch CAS automatically on the 1st of January each year. 7.1.3. The aforementioned entities may, at their option, provide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. 14. This circular is available on SEBI website at www.sebi.gov.in under the category "Legal → Circulars". Yours faithfully, S. Manjesh Roy General Manager Officer of Investor Assistance and Education Investor Awareness Division - 3 Tel no.: +91-22-2644 9710 or 4045 9710 [email protected] Annexure - A To circular No. SEBI/HO/OIAE/OIAE_IAD-3/P/CIR/2025/32 on Harnessing DigiLocker as a Digital Public Infrastructure for reducing unclaimed assets in the Indian Securities Market dated March 19, 2025 1. DigiLocker: functionalities and features 1.1. DigiLocker is an initiative of the Ministry of Electronics and IT (MeitY) of the Government of India under the Digital India programme. DigiLocker empowers the citizens by providing access to authentic digital documents in their digital document wallet. Such documents include Aadhaar, PAN, Driving Licence, Birth and Death certificates, bank account statement, insurance policy, and statement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble with the KRAs, is an alternate source of demise reporting to the DigiLocker (see Annexure B for elaboration). Annexure B To circular No. SEBI/HO/OIAE/OIAE_IAD-3/P/CIR/2025/32 on Harnessing DigiLocker as a Digital Public Infrastructure for reducing unclaimed assets in the Indian Securities Market dated March 19, 2025 1. Centralized mechanism of reporting demise of investor through the KRAs 1.1. SEBI, vide circular dated October 03, 2023 [Circular No. SEBI/HO/OIAE/OIAE_IAD-1/P/CIR/2023/0000000163, titled, 'Centralized mechanism for reporting the demise of an investor through KRAs', w.e.f. January 01, 2024.] has operationalized the captioned mechanism through KRAs. Accordingly, the verified intimation on demise of investor and also the death certificate, as furnished by joint account holder(s) or nominee(s) or legal representative or family member (collectively, referred to as 'notifier(s)') of a deceased investor to any intermediary registered with SEBI, is captured in the KRA system. 1.2. Thereafter, the KRA systems send automatic message to all intermediaries, who have uploaded, updated or fetched the KYC records of the deceased investor. Such intermediaries are then requi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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