How is SEBI collaborating with DigiLocker to lessen unclaimed assets and safeguard investors’ interests?
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Synopsis
In a significant move, the Securities and Exchange Board of India (SEBI) has teamed up with DigiLocker to address the critical issue of unclaimed assets. This partnership aims to enhance investor protection and streamline the management of digital documents, ensuring the security of nominees in the securities market.
Key Takeaways
- SEBI collaborates with DigiLocker to protect investor interests.
- Initiatives aimed at reducing unclaimed assets in the securities market.
- Mandatory contact information for ease of asset transmission.
- Increased vigilance against fraud on social media platforms.
- Empowers investors through secure digital document management.
Mumbai, April 27 (NationPress) The Securities and Exchange Board of India (SEBI) has officially joined forces with DigiLocker to tackle the issue of unclaimed assets and bolster the protection of investors.
This collaboration was announced by the National Stock Exchange (NSE) via a post on the social media platform X.
“SEBI has collaborated with DigiLocker to mitigate unclaimed assets in the securities market and safeguard the interests of nominees,” the exchange disclosed.
“A secure method to manage digital documents—designed with investors in mind,” the NSE further emphasized.
In an effort to minimize unclaimed assets acquired by investors in the capital markets, the capital market regulator has introduced various initiatives, including the requirement for contact information to streamline the transmission process.
SEBI’s measures for addressing unclaimed assets comprise regulations for dormant accounts and folios; mandatory submission of contact and banking details, nomination requirements or opt-out mandates, an easier transmission process, and centralized reporting of investor deaths.
Concerned about fraudulent activities linked to the securities market on numerous social media platforms, this month, the capital market regulator issued a warning for investors to remain vigilant and conduct due diligence to verify the authenticity of social media accounts of SEBI-registered entities.
SEBI has observed a rise in fraudulent activities related to the securities market on various social media platforms including YouTube, Facebook, Instagram, X (formerly Twitter), WhatsApp, Telegram, Google Play Store, and Apple Store, among others.
“With the growing use of digital communication platforms, it has been noted that scammers are luring victims by offering trading tips under the guise of education. They also disseminate misleading testimonials, offering guarantees of assured or risk-free returns, through multiple social media channels,” stated SEBI.
Furthermore, SEBI identified unregistered investment advisory services being operated by entities falsely claiming registration as SEBI intermediaries or displaying counterfeit certificates allegedly issued by the regulator.
Additionally, it has detected impersonation of SEBI-registered entities by fraudulent trading platforms, as well as WhatsApp and Telegram channels that misleadingly assert or imply an affiliation with SEBI-registered entities, promising assured or risk-free returns.
Point of View
I believe that the collaboration between SEBI and DigiLocker is a proactive step towards safeguarding investors' interests. This partnership not only addresses the pressing issue of unclaimed assets but also enhances transparency and accountability in the capital markets. It is crucial for investors to remain informed and vigilant in this digital age.
NationPress
23/05/2025
Frequently Asked Questions
What is the purpose of SEBI's partnership with DigiLocker?
The partnership aims to reduce unclaimed assets in the securities market and protect the interests of nominees.
How does SEBI plan to minimize unclaimed assets?
SEBI has implemented various initiatives, including mandatory submission of contact and bank details, along with simplified processes for transmission.
What should investors be cautious about?
Investors should verify the authenticity of social media accounts of SEBI-registered entities to avoid fraud.
