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Sebi's new proposal: DigiLocker to become key in asset transfer after death


Published on 2024-12-16 03:40:57 - Business Standard
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  • In case of a user's death, DigiLocker will update the account status based on death registration data from the Registrar General of India (RGI), or information from the KRA system.

The Securities and Exchange Board of India (SEBI) has proposed a new framework to streamline the process of asset transfer after an individual's death, leveraging the digital infrastructure of DigiLocker. This initiative aims to simplify the often cumbersome and time-consuming process of transferring securities by allowing nominees or legal heirs to access the deceased's financial assets through DigiLocker. Under this proposal, upon the death of an investor, their nominees would be able to use DigiLocker to retrieve necessary documents like wills or succession certificates, which are crucial for asset transfer. This move is expected to reduce the dependency on physical documents, expedite the transfer process, and enhance transparency and efficiency in handling post-mortem financial affairs. The proposal is part of SEBI's broader efforts to modernize and digitize financial transactions, making them more accessible and less prone to disputes or delays.

Read the Full Business Standard Article at:
[ https://www.business-standard.com/finance/personal-finance/sebi-s-new-proposal-digilocker-to-become-key-in-asset-transfer-after-death-124121600481_1.html ]