Sebi introduces new rules to manage unclaimed assets

The Securities and Exchange Board of India (Sebi) is introducing new rules to reduce unclaimed assets in the securities market. These rules will start on April 1, 2025, and aim to protect investors and their interests. The new measures include managing accounts that have been inactive for a long time, requiring investors to provide their contact and bank details, and ensuring that investors either name a nominee or choose not to have one. Sebi will also simplify the process for transferring assets after an investor's death. DigiLocker, a digital document storage service provided by the Indian government, will play a key role in these new regulations. It allows users to store important documents securely. Investors are encouraged to name nominees in DigiLocker so that those nominees can access the user's information after they pass away. When an investor dies, DigiLocker will automatically notify their nominees through SMS and email. After verifying their identity, these nominees can access the investor's digital information, which will include details of financial assets. All financial institutions are required to link with DigiLocker to allow investors to check their holdings and transaction statements quickly. In addition, investors can choose to receive their annual consolidated account statements automatically each January. Sebi advises investors to use DigiLocker for better management of their assets and to think about naming nominees for both DigiLocker and any existing accounts they may have.