SEBI On Digilocker: To facilitate the transfer of financial assets in the name of any investor investing in the share market or mutual fund after his death, the stock market regulator SEBI (Securities and Exchange Board of India) is preparing to insist on the use of DigiLocker. The financial assets of the investors in Demat accounts, which include shares as well as units in mutual funds, will be stored safely in the government digital storage system DigiLocker.  

Stock-mutual fund unit details will be stored in DigiLocker 

Market regulator Securities Exchange Board of India (SEBI) has proposed to use the central government's digital storage system DigiLocker. The purpose of this proposal is to simplify and facilitate the transfer of existing financial assets in the name of any investor in case of his death. Whatever financial assets are present in the name of the investor can be easily transferred to his nominee or heir. The financial assets of investors include statements of demat accounts which contain shares, debentures. Apart from this, mutual fund schemes also have units in the name of investors. The statement of investment in all these financial assets of the investors will be stored safely in DigiLocker. 

The nominee will be notified upon the death of the investor 

According to this proposal, after the death of the investor, DigiLocker will update his account and notify the person whom the investor has made his nominee or heir so that that person can manage the financial assets. In this way, the nominee of the investor who has died will be able to access his financial asset details and transfer the assets. SEBI's aim is to prevent stocks and mutual funds from becoming unclaimed assets and transfer the assets to the right heir. 

You can give your suggestions till 31 December 

SEBI has proposed in its consultation paper that depositories and mutual funds should make demat and mutual fund holding statements available on DigiLocker. It has also been proposed that KYC Registration Agencies (KRAs) share the information of investor's death with DigiLocker. DigiLocker users can nominate any person to access the account. SEBI has sought suggestions from the people regarding this by December 31, 2024.