India’s capital markets regulator, the Securities and Exchange Board of India (Sebi), has partnered with cloud-based security platform DigiLocker to help reduce unclaimed assets and help investors securely manage their digital documents, according to a post by NSE on the social media platform X.
Sebi‘s move to collaborate with DigiLocker comes as the regulator aims to reduce unclaimed assets in the securities market and protect the nominee’s interest in case of the death of the primary investor for the account.
“SEBI has partnered with DigiLocker to reduce unclaimed assets in the securities market and protect nominees’ interests,” according to the post on X.
Minimising unclaimed assets
To minimise unclaimed assets bought by investors in the capital markets, Sebi has taken many initiatives, such as mandating the submission of contact, to simplify the transmission process.
5 SEBI initiatives for unclaimed assets
1. Sebi launched norms for inactive accounts and folios
2. Mandatory contact and bank details submission
3. Nomination requirement or opt-out mandate
4. Simplified process of transmission
5. Centralised Reporting of Investor Demise.
A collaboration with DigiLocker shows that the regulator is focusing on leveraging the security of the digital platform to offer investors its services.
“A secure way to manage digital documents—built with investors in mind,” said NSE in its post on X. “SEBI is now leveraging the DigiLocker to enhance the security and accessibility for investors,” they said.
SEBI flags stock market fraud
According to an earlier Mint report, Sebi said that they have noticed a rise in in stock market frauds through various social media platforms like in stock market frauds.
“With increasing adoption of digital communication platforms, it is observed that scammers 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 SMPs,” they said, as per the report on April 21.
Sebi highlighted that Unregistered Investment Advisory Services, which show fake certificates purportedly issued by the markets regulator, are on the rise, along with entities which are impersonating SEBI-registered entities by using the fraudulent trading platform.
Sebi also said that investors should avoid misleading and manipulative content shared on social media, which is spread through fraudulent ads or posts on various platforms.
Scammers also entice investors by claiming they provide “exclusive” services on their platforms. These practices are carried out to lure in investors with big promises in their trading returns experience.
