SEBI Partners with DigiLocker to Secure Investors' Interests and Reduce Unclaimed Assets

The Securities and Exchange Board of India (SEBI) has joined with DigiLocker, a cloud-based secure document platform, to tackle the growing issue of unclaimed assets in the securities market. The move, announced via a post by the National Stock Exchange (NSE) on social media platform X, aims to protect nominees' interests after the primary investor's death and simplify access to crucial financial documents.

The collaboration aims to ensure the timely and proper transmission of investor assets to the rightful nominees. By leveraging DigiLocker's secure digital storage system, SEBI aims to offer investors a safe and accessible way to manage important documents. NSE described the initiative as "a secure way to manage digital documents—built with investors in mind."

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What's the initiative?

This initiative is part of SEBI's broader efforts to minimise unclaimed assets and improve investor services. Over the past year, SEBI has launched several measures targeting inactive accounts and folios, mandating the submission of contact and bank details, enforcing a nomination requirement (or opt-out mandate), simplifying the process of asset transmission, and centralising the reporting of investor demise. These efforts are designed to make the transmission of securities more efficient and reduce the risks of assets remaining unclaimed.

The partnership with DigiLocker is seen as a significant step forward, as it allows digital handling of investor documents with heightened security and easier access for investors and their nominees.

In addition to addressing unclaimed assets, SEBI has also flagged rising concerns about stock market fraud, particularly through social media platforms. According to an earlier report by Mint, SEBI has observed a surge in scams where fraudsters use platforms like YouTube, Instagram, Facebook, X (formerly Twitter), WhatsApp, and Telegram to lure investors.

The people behind these scams often pose as genuine educators, provide false testimonials, or promise guaranteed returns—tactics that violate securities laws. SEBI warned that many unregistered advisory services falsely claim association with SEBI by using fake certificates or impersonating registered entities. Investors were urged to exercise caution, verify the authenticity of advisory services, and avoid falling for misleading promotional content circulating online.

The market regulator emphasised that vigilance is critical with the increased use of digital communication. Investors must cross-check the authenticity of service providers before engaging with them.

Conclusion

SEBI's collaboration with DigiLocker marks an essential step toward safeguarding investor interests and reducing the problem of unclaimed assets. At the same time, its alerts about rising financial scams serve as a timely reminder for investors to remain cautious in the digital age. SEBI aims to build a safer, more transparent securities market for all participants through these combined efforts.