Entities allowed to use e-KYC Aadhaar Authentication services of UIDAI in Securities Market as sub-KUA
Summary
This circular identifies reporting entities notified by the Department of Revenue to use UIDAI Aadhaar authentication services under the Prevention of Money Laundering Act. It mandates that these entities must enter into agreements with KYC User Agencies (KUAs) and register as sub-KUAs. The process for onboarding and authentication must adhere to guidelines prescribed by UIDAI and previous SEBI regulations.
Text
SEBI issued circular No. SEBI/HO/MIRSD/DOP/CIR/P/2019/123 dated November 05, 2019 detailing the e-KYC Authentication facility under section 11A of the Prevention of Money Laundering Act, 2002, by entities in the securities market for Resident Investors.
Subsequently, SEBI vide its circular SEBI/HO/MIRSD/DOP/CIR/P/2020/80 dated May 12, 2020 listed the entities who shall undertake Aadhaar Authentication service of UIDAI as KYC user agency (KUA) in securities market.
Department of Revenue-Ministry of Finance, Government of India, vide Gazette Notification No. S.O. 3187(E) dated July 13, 2022 has notified 155 reporting entities to use Aadhaar authentication services of UIDAI under section 11A of the Prevention of Money-laundering Act, 2002.
Department of Revenue-Ministry of Finance, Government of India, vide Gazette Notification No. S.O. 446 (E) dated January 30, 2023 has notified another 39 reporting entities to use Aadhaar authentication services of UIDAI under section 11A of the Prevention of Money Laundering Act, 2002.
The above mentioned entities shall enter into an agreement with a KUA and get themselves registered with UIDAI as sub-KUAs. The agreement in this regard shall be as prescribed by UIDAI. Further, the Sub-KUAs shall follow the process as detailed in SEBI circular dated Nov 05, 2019 and as may be prescribed by UIDAI from time to time.
This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities markets.
Source: SecMarx — Entities allowed to use e-KYC Aadhaar Authentication services of UIDAI in Securities Market as sub-KUA. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.