scorecardresearch
Follow Us:
Friday, May 14, 2021

Sebi issues circular on Aadhaar e-KYC for investors

The circular mentions about the requirements to be fulfilled by entities registered with the UIDAI as KYC User Agency (KUA) as well as for sub-KUA.

By: PTI | New Delhi |
November 5, 2019 8:05:19 pm
SEBI, KYC, AADHAAR, AADHAAR circular for investors, sebi issues aadhaar circular, business news, indian express Sebi on Tuesday issued a detailed circular regarding the process to be followed for Aadhaar-based electronic KYC exercise for domestic investors.

Sebi on Tuesday issued a detailed circular regarding the process to be followed for Aadhaar-based electronic KYC exercise for domestic investors.

The circular mentions about the requirements to be fulfilled by entities registered with the UIDAI as KYC User Agency (KUA) as well as for sub-KUA.

For such KYC process, there would be two options — online portal and assisted investor e-KYC processes.

Sebi-registered intermediaries and mutual fund distributors, who want to undertake Aadhaar authentication services through KUAs, should enter into an agreement with any one KUA. They should also get themselves registered with UIDAI as sub-KUAs.

Under the Prevention of Money Laundering Act (PMLA), entities in the securities market that are notified by the central government can undertake Aadhaar authentication.

“Sebi-registered intermediaries for reasons such as online on-boarding of clients, customer convenience, increased efficiency and reduced time for client onboarding would prefer to use Aadhaar based e-KYC facility to complete the KYC of the client,” the circular said.

For the appointment of such intermediaries and mutual fund distributors as sub-KUAs, the KUA concerned would send list of proposed names to Sebi. The latter would forward the list to UIDAI for onboarding.

“An agreement will be signed between KUA and sub-KUA, as prescribed by UIDAI. Sub-KUA shall also comply with the Aadhaar Act Regulations, circulars, guidelines etc. issued by UIDAI from time to time,” the circular said.

📣 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines

For all the latest Business News, download Indian Express App.

  • The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.
Advertisement
Advertisement
Advertisement
Advertisement
x