New Delhi
To ease the transfer of financial assets held in the name of any investor after his death, stock market regulator SEBI is preparing to insist on the use of DigiLocker. Investors’ financial assets including demat accounts, shares as well as units in mutual funds will be safely stored in the government digital storage system DigiLocker.
Stock-mutual fund unit details will be stored in DigiLocker
Market regulator Security Exchange Board of India has proposed to use the central government’s digital storage system DigiLocker. The purpose of this proposal is to make the transfer of existing financial assets in the name of any investor simple and easy 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. Investors’ financial assets include statements of demat accounts which include shares and debentures. Apart from this, mutual fund schemes also have units in the name of investors. The investment statements of investors in all these financial assets 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 deceased investor will be able to access his financial assets details and transfer the assets. The objective of SEBI is to prevent stocks and mutual funds from becoming unclaimed assets and to transfer the assets to the rightful heirs.
You can give suggestions till 31st 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 share information about the death of the investor with DigiLocker. DigiLocker users can nominate any person to access the account. SEBI has sought suggestions from people regarding this till December 31, 2024.
