Will Sebi's DigiLocker Tweak Solve Unclaimed MF Issues?

DigiLocker integration is likely to streamline mutual fund asset transmission for nominees

- Anil Poste

Many mutual fund holdings often go unclaimed because investors either fail to document them properly or don't inform their family members. To address this, the Securities and Exchange Board of India (Sebi) has introduced a mechanism that integrates mutual fund statements with DigiLocker, enabling nominees to access investment details when needed.

The initiative is aimed at reducing unclaimed assets in the securities market, ensuring that family members of the deceased investors are promptly informed of their holdings.

What is DigiLocker?

DigiLocker, a government-backed digital document wallet, stores key documents such as Aadhaar, Permanent Account Number (PAN), driving licence and insurance policies, and academic records, among others.

By adding mutual fund statements and demat holdings to the platform, the markets regulator is enabling investors to consolidate their financial documents in one secure location. Sebi has directed asset management companies (AMCs) and registrars to register as issuers on DigiLocker, allowing investors to fetch their latest mutual fund statements seamlessly.

How does this feature work?