SEBI Joins Digilocker To Reduce Unclaimed Assets, Protect Nominees’ Interests

(MENAFN- IANS) Mumbai, April 27 (IANS) The Securities and Exchange Board of India (SEBI) on Sunday collaborated with DigiLocker to help reduce unclaimed assets and protect investors.

The partnership was revealed in a post by the National Stock Exchange (NSE) on the social media platform X.

“SEBI has partnered with DigiLocker to reduce unclaimed assets in the securities market and protect nominees' interests,” said the exchange.

“A secure way to manage digital documents-built with investors in mind,” the NSE added.

To minimise unclaimed assets bought by investors in the capital markets, the capital markets regulator has taken several initiatives, such as mandating the submission of contact, to simplify the transmission process.

SEBI initiatives for unclaimed assets are norms for inactive accounts and folios; mandatory contact and bank details submission, nomination requirement or opt-out mandate, simplified process of transmission and centralised reporting of investor demise.

Alarmed at frauds related to securities market on various social media platforms, capital markets regulator this month issued an advisory for investors to exercise caution and due diligence to verify the genuineness of social media handles of SEBI-registered entities while accessing them.

SEBI noticed an increase in frauds related to securities market on various social media platforms such as YouTube, Facebook, Instagram, X (previously Twitter), WhatsApp, Telegram, Google Play Store and Apple Store, etc.

“With increasing adoption of digital communication platforms, it is observed that scamsters are enticing victims by giving trading calls in the name of providing education. They also provide misleading or deceptive testimonials, promise or guarantee of assured or risk-free return etc. through various social media platforms,” according to a SEBI statement.

SEBI noticed unregistered investment advisory services being provided by entities that falsely claim to be registered intermediaries with SEBI or by showcasing fake certificates purportedly issued by the regulator.

It also observed impersonation of SEBI-registered entities by fraudulent trading platforms, WhatsApp, Telegram channels which deceptively claim or suggest affiliation with SEBI-registered entity claiming to provide assured or risk-free return.

-IANS

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