SEBI permits several entities to undertake Aadhaar Authentication service of the UIDAI in securities market

May 13, 2020 | by Avantis RegTech Legal Research Team

Industry Specific Compliance

The Securities and Exchange Board of India (SEBI) on May 12, 2020 has allowed certain entities to undertake e-KYC aadhaar authentication service of the UIDAI in securities market under Section 11A of the Prevention of Money-laundering Act, 2002. SEBI had earlier clarified that the usage of Aadhaar as issued by the UIDAI is optional and on a voluntary basis.

Whereas, now the following entities are permitted to use e-KYC:-

I. Bombay Stock Exchange Limited 

II. National Securities Depository Limited 

III. Central Depository Services (India) Limited 

IV. CDSL Ventures Limited 

V. NSDL Database Management Limited 

VI. NSE Data and Analytics Limited 

VII. CAMS Investor Services Private Limited 

VIII. Computer Age Management Services Private Limited

The above listed entities shall get registered with UIDAI as KYC user agency (KUA) and shall allow SEBI registered intermediaries or mutual fund distributors to undertake Aadhaar Authentication in respect of their clients for the purpose of KYC. The intermediaries who want to undertake Aadhaar authentication services through KUAs, shall enter into an agreement with KUA and get themselves registered with UIDAI as sub-KUAs.

[SEBI Circular No. SEBI/HO/MIRSD/DOP/CIR/P/2020/80]


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