SEBI and DigiLocker Partnership to Protect Nominee Interest

• 28 Apr 2025
• 441 Views

Indian Capital Market’s Regulator, Securities and Exchange Board of India (SEBI), has partnered with DigiLocker, a cloud-based security platform. The partnership hopes to reduce unclaimed assets and enable investors to manage their digital documents in a secure manner, as per NSE post on social media platform X.

SEBI Initiatives for Reducing Unclaimed Assets

From time-to-time, SEBI has taken many initiatives to reduce unclaimed assets that investors purchase through capital markets. Some popular initiatives by SEBI for unclaimed assets include the following:

• SEBI made contact and bank details submissions a mandatory requirement.

• It launched norms for the inactive accounts as well as folios.

• It made the transmission process simpler.

• The capital markets regulator centralized reporting of investor’s demise.

• SEBI made it mandatory for an investor to either nominate a beneficiary or submit a formal request opting out.

By teaming up with DigiLocker, SEBI shows that it is focusing on leveraging the digital platform’s security to offer investors its services. This month, the capital market regulators released an advisory for investors to exercise caution and due diligence to verify the authenticity of SEBI-registered entities’ social media accounts while accessing them.

Sources: 

• Livemint
• Economic Times