Starting April, DigiLocker can be used for holding shares, MFs
What's the story
Starting April 1, 2025, stock market and mutual fund (MF) investors shall be able to access and store their holding statements from Demat accounts and Consolidated Account Statement (CAS) using DigiLocker. The new regulation introduced by the Securities and Exchange Board of India (SEBI) seeks to reduce unclaimed assets while simplifying access to investment details.
Legal validity
DigiLocker documents hold same legal standing as originals
Documents stored in DigiLocker are treated as having the same legal standing as physical originals under the Information Technology Act, 2000. This feature is likely to further streamline investment tracking and minimize disputes over unclaimed holdings. KYC Registration Agencies (KRAs) regulated by SEBI will be the primary source of verification for notifying nominees and facilitating asset transfers.
Usage guide
How investors can use DigiLocker
Investors shall be able to store Demat and MF holding statements in DigiLocker. They can also nominate a DigiLocker user who will be notified upon their demise. If the nominee is also listed in the Demat/MF account, they can initiate the transmission process. If not, they can share details with the legal heir or account nominee for further action.
Recommendation
SEBI encourages investors to use DigiLocker
SEBI has also advised investors to use DigiLocker and add nominees for streamlined asset management. The regulatory body believes that these changes will simplify access for nominees without disrupting existing transmission rules. By making investments easily trackable, the new regulation aims at reducing unclaimed assets and disputes over unclaimed holdings.