New Delhi, April 1 – In a significant move to empower investors and streamline access to financial documents, users can now store and view details of their demat accounts and mutual fund holdings through DigiLocker, the government's digital document storage platform. This facility has come into effect starting April 1.
As per agency report, the initiative is expected to help reduce the volume of unclaimed assets in the Indian securities market and protect investors' interests. DigiLocker, a flagship digital service by the Government of India, allows citizens to securely store and share official documents in digital form.
Previously, DigiLocker offered access to bank account details, insurance policy certificates, and National Pension System (NPS) account summaries. With the latest update, users can now retrieve and store their Consolidated Account Statement (CAS), which includes a detailed summary of shares and mutual fund units held in their demat accounts.
The platform also allows users to add nominees to their DigiLocker accounts. This ensures that in the event of the user’s death, legal heirs or family members can access the necessary documents more efficiently, facilitating the management of the deceased's financial assets.
In addition, the DigiLocker system can now update account statuses by using information from death certificates or details received from KYC Registration Agencies (KRAs). Upon confirmation of a user’s death, the system automatically notifies the nominee through SMS and email, aiding in the prompt handling of the investor’s estate.
To enable seamless integration, Asset Management Companies (AMCs), Registrar and Transfer Agents (RTAs), and depository institutions are expected to register with DigiLocker. This will allow investors to access their mutual fund and demat account details directly through the platform.
Market regulator SEBI is aiming to reduce issues like inactive accounts and missing contact or bank information by promoting the use of DigiLocker, ultimately minimizing unclaimed securities in the market.
