SEBI proposes new framework for unclaimed investor assets to the tune of Rs 500 cr

The Securities and Exchange Board of India (SEBI) has identified over ₹500 crore in unclaimed investor assets lying with stock brokers and trading members. To address this, the regulator has proposed a new framework aimed at simplifying the process for investors to reclaim their funds and securities.

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According to SEBI’s consultation paper released on February 11, approximately ₹323 crore in unclaimed funds and ₹182 crore in unclaimed securities were recorded as of January 31, 2025. The proposed framework seeks to ensure a structured mechanism for investors to claim their assets efficiently.

Currently, a system exists for handling unclaimed funds, which includes tracing clients, maintaining an audit trail, and transferring client funds to clearing corporations (CCs) at the end of each day. However, due to the substantial volume of unclaimed assets, SEBI is advocating for a more detailed operational framework to improve efficiency and transparency.

The regulator has invited public comments and suggestions on the proposed framework, with submissions open until March 4, 2025. This initiative is expected to streamline the claims process and ensure rightful asset distribution to investors.

By strengthening regulations, SEBI aims to enhance investor protection and reduce the accumulation of unclaimed assets within the financial system.