Entities permitted to undertake e-KYC Aadhaar Authentication service of UIDAI in Securities Market
Summary
This circular permits nine specific entities to undertake e-KYC Aadhaar Authentication services in the securities market. These designated entities must register as KYC User Agencies with UIDAI and facilitate authentication for SEBI-registered intermediaries. Stock Exchanges and Depositories are directed to implement these provisions, amend their bye-laws, and monitor compliance.
Text
SEBI clarified that the usage of Aadhaar as issued by the UIDAI is optional and on a voluntary basis.
Entities recommended by UIDAI and permitted by SEBI may perform Aadhaar Authentication in the Securities Market subject to privacy and security standards under the Aadhaar Act.
If a reporting entity no longer fulfils the requirements for performing authentication, the Central Government may withdraw the notification after giving an opportunity to the reporting entity.
The following entities shall undertake Aadhaar Authentication service of UIDAI: Bombay Stock Exchange Limited, National Securities Depository Limited, Central Depository Services (India) Limited, CDSL Ventures Limited, NSDL Database Management Limited, NSE Data and Analytics Limited, CAMS Investor Services Private Limited, Computer Age Management Services Private Limited.
The listed entities shall get registered with UIDAI as KYC user agency (KUA) and allow SEBI registered intermediaries/mutual fund distributors to undertake Aadhaar Authentication. Intermediaries must enter into an agreement with KUA and register as sub-KUAs.
Stock Exchanges and Depositories are directed to bring provisions to notice, disseminate on websites, amend bye-laws for uniformity, communicate implementation status monthly, and monitor compliance.
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 investor interests and regulate securities markets.
Source: SecMarx — Entities permitted to undertake e-KYC Aadhaar Authentication service of UIDAI in Securities Market. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.