SEBI allows e-KYC using Aadhaar Authentication Service to 8 entities in Securities Market [Read Circular]

SEBI - e-KYC - Aadhaar - Securities Market - Taxscan

The Security and Exchange Board of India (SEBI), on Tuesday, issued a circular permitting 8 entities to undertake e-KYC Aadhaar Authentication service of UIDAI in the Securities Market.

The move is aimed at keeping money laundering in check. It comes after the government on 22 April notified certain stock/securities-related entities, as per the recommendation by UIDAI and SEBI, to undertake Aadhaar authentication service of UIDAI under the Prevention of Money Laundering Act, 2002.

Stock exchange BSE, depositories CDSL (Central Depository Services India Ltd) and NSDL (National Securities Depository Ltd), CDSL Ventures Ltd, NSDL Database Management Ltd, NSE Data and Analytics Ltd, CAMS Investor Services Pvt Ltd, and Computer Age Management Services Pvt Ltd have been allowed to carry out e-KYC authentication using Aadhaar number.

“The above-listed entities shall get registered with UIDAI as KYC user agency (“KUA”) and shall allow SEBI registered intermediaries/mutual fund distributors to undertake Aadhaar Authentication in respect of their clients for the purpose of KYC,” the circular said.

Further, SEBI registered intermediaries and mutual fund distributors, who want to undertake Aadhaar authentication services through KUAs, are required to enter into an agreement with KUA and get themselves registered with UIDAI as sub-KUAs.

“The agreement in this regard shall be as prescribed by UIDAI (Unique Identification Authority of India),” Sebi said.

The KUAs and sub-KUAs need to follow the process as may be prescribed by UIDAI from time to time. They will also have to follow the process recommended by Sebi on e-KYC authentication facility.

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