%20(500%20%C3%97%20280%20px)%20(500%20x%20300%20px)%20(20).png "SEBI partnered with Digilocker to resolve the issue of unclaimed financial assets")
- Objective: The initiative aims to reduce unclaimed financial assets (e.g., dormant accounts, unclaimed dividends, forgotten investments) in the Indian securities market by improving accessibility and inheritance processes.
- DigiLocker Integration: Investors can store and access demat account and mutual fund statements, including Consolidated Account Statements (CAS), securely through DigiLocker, a government-backed digital platform.
- Nomination Facility: Investors can appoint data access nominees who receive read-only access to the investor’s financial holdings on DigiLocker after their death, simplifying asset transmission.
- Notification Process: Upon an investor’s death, KYC Registration Agencies (KRAs) inform DigiLocker, which then automatically notifies nominees via SMS and email to ensure timely awareness.
- Mandatory Compliance: SEBI has directed asset management companies (AMCs), depositories, and KRAs to integrate with DigiLocker by April 1, 2025, ensuring seamless statement retrieval for investors.
- Broader Functionality: DigiLocker already supports storing other financial documents like bank statements, insurance policies, and NPS details, making it a centralized hub for managing financial assets.
Question:
Q.1 What is the primary objective of SEBI’s collaboration with DigiLocker, as per the circular issued on March 19, 2025?a) To increase the adoption of digital wallets in India
b) To reduce unclaimed financial assets in the securities market
c) To promote cryptocurrency investments among retail investors
d) To enhance real-time trading speed for institutional investors
Answer: b) The initiative aims to reduce unclaimed financial assets (e.g., dormant accounts, unclaimed dividends, forgotten investments) in the Indian securities market by improving accessibility and inheritance processes.
