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SEBI proposed the use of DigiLocker to streamline processes in the securities market and reduce the number of unclaimed assets. DigiLocker is a digital document storage platform, where all the important documents can be kept in authenticated form. SEBI also suggested that information about the death of the investor should be shared with DigiLocker.
New Delhi. Market regulator SEBI proposed the use of DigiLocker to streamline processes in the securities market and reduce the number of unclaimed assets. DigiLocker is a government-backed digital document storage platform, where all important documents can be stored in authenticated form. Depositories and mutual funds should provide details of demat and mutual fund holdings on DigiLocker, the Securities and Exchange Board of India (SEBI) said in its advisory paper.
Apart from this, SEBI also suggested that KYC registration agencies (KRA) should share the information about the death of the investor with DigiLocker. Individuals using DigiLocker can nominate individuals for their accounts. The objective of this proposal is to reduce unclaimed and undisclosed assets, and ensure smooth transfer of financial investments to the rightful heirs while protecting the interests of investors.
The regulator proposed that in the event of death of a user, DigiLocker will update the account status based on death registration information from the Registrar General of India (RGI) or information from the KRA system. DigiLocker will automatically inform the nominee in this regard through SMS and email. The nominee can then access the digital record of the deceased and initiate the process of asset transfer by contacting the concerned AMC or Depository Participant (DP). SEBI has sought public comments on these proposals till December 31.
Disclaimer: Prabhasakshi has not edited this news. This news has been published from PTI-language feed.
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