Sebi allows e-KYC using Aadhaar for 8 entities


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Sebi lists 8 entities that can undertake e-KYC Aadhaar authentication. (PTI Photo)

Sebi lists 8 entities that can undertake e-KYC Aadhaar authentication. (PTI Photo)

New Delhi: Markets regulator Sebi on Tuesday came out with a list of eight entities, including BSE, that can undertake e-KYC Aadhaar authentication.

Apart from BSE, depositories -- Central Depository Services (India) Ltd (CDSL) and National Securities Depository Ltd (NSDL)-- have also been permitted to use e-KYC (Electronic-Know Your Customer) Aadhaar authentication, as per a Sebi circular.

Besides, 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 also 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.

The circular comes after the Government of India on April 22, 2020 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.

The move is aimed at checking money laundering.