SEBI New Proposal: The purpose of this proposal is to simplify and facilitate the transfer of financial assets in the name of any investor to the name of the nominee after his death.
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 emphasize on the use of DigiLocker. Investors’ financial assets 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 the use of the central government’s digital storage system DigiLocker. The purpose of this proposal is to simplify and facilitate the transfer of financial assets existing in the name of any investor on 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 the investors include the statement of demat accounts which contain shares, debentures. Apart from this, mutual fund schemes also contain units in the name of the investors. The statement of investment in all these financial assets of the investors will be stored safely in DigiLocker.
Will notify the nominee on the death of the investor
According to this proposal, after the death of the investor, DigiLocker will update his account and notify those 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 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 the death of the investor with DigiLocker. DigiLocker users can nominate any person to access the account. SEBI has asked people for suggestions regarding this by December 31, 2024.
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