To streamline asset management, lower the number of unclaimed assets, and provide quicker paperless services, SEBI has suggested utilizing DigiLocker.
The Securities and Exchange Board of India (SEBI) has suggested using DigiLocker, a digital document storage platform supported by the government, to expedite procedures and lower the amount of securities market unclaimed assets.
According to the regulator’s consultation document, demat and mutual fund (MF) holding statements should be provided by depositories and mutual funds using DigiLocker.
Automatic Transmission updates for assets
Following a DigiLocker user’s death, SEBI’s plan will automatically update their account status based on information from KYC Registration Agencies or the Registrar General of India.
DigiLocker will email and SMS the candidate as soon as a user’s death is recorded. From there, the nominee could contact the appropriate Asset Management Company (AMC) or Depository Participant (DP) to gain access to the deceased user’s digital information and start the transfer of financial assets.
These changes are intended to safeguard investor interests, streamline asset transmission, and lower the amount of unclaimed and unidentified assets. Additionally, DigiLocker customers have the option to choose certain individuals for their accounts, which facilitates the transfer of financial assets to their legitimate heirs. The framework may be finalized if SEBI receives public input on these ideas by December 31. If put into practice, these steps could simplify asset management, lessen inheritance conflicts, and facilitate the process for investors and their nominees to claim unclaimed assets.
Concerning DigiLocker
The Ministry of Electronics & IT’s Digital India program includes the DigiLocker initiative, which offers safe cloud-based storage for digital documents. PAN cards, voter IDs, driver’s licenses, and policy documents are among the important documents that citizens can save and exchange. DigiLocker provides certified and verified virtual records by doing away with the need for physical documents, guaranteeing safe and easy access.
The Benefits of DigiLocker
For both citizens and agencies, DigiLocker provides a number of benefits. It guarantees that digital papers are just as legally valid as their physical counterparts while giving citizens the convenience of accessing crucial documents at any time and from any location.
Additionally, it expedites access to government benefits, employment, financial services, healthcare, and education, and permits the safe sharing of documents with consent.
DigiLocker supports paperless governance by reducing paperwork and verification efforts for agencies. It serves as a safe platform for the exchange of documents between issuers and verifiers and guarantees real-time access to papers straight from the issuing authority, guaranteeing accuracy. With the approval of the citizen, it also enables agencies to quickly verify documents.
Read More: – PAN 2.0: Old Cards Stay Valid – All You Need to Know
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