SEBI allows use of Aadhaar e-KYC as identity proof

Mumbai: Market regulator Sebi today said itwill accept e-KYC (Know Your Client) service of UIDAI as avalid proof of identity and address for opening accounts with

brokerage firms, mutual funds, portfolio managers and othercapital market entities.

‘Aadhaar’, is a 12-digit individual identification numberissued by UIDAI (Unique Identification Authority of India).

“In consultation with UIDAI and the market participants,it has now been decided to accept e-KYC service launched byUIDAI also, as a valid process for KYC verification,” theSecurities and Exchange Board of India (Sebi) said.

“The information containing relevant client details andphotograph made available from UIDAI as a result of e-KYCprocess shall be treated as sufficient proof of Identity andaddress of the client,” it added.

However, the client would have to authorise theintermediary to access his data through UIDAI system, Sebisaid in a circular issued today to mutual funds, brokers,

depository participants, portfolio managers, alternativeinvestment funds and collective investment schemes, amongother market entities.

In August 2012, Sebi had allowed investors to use’Aadhaar’ cards as a valid address proof for their accountswith brokerage firms, mutual funds, portfolio managers and

other capital market entities.

Aadhaar is already permitted as valid ID proof andaddress proof documents in the KYC (Know Your Customer)procedures for opening of bank accounts, insurance, telecomand many other services.

Besides, the regulator had said that Aadhaar can be usedas ‘Proof of Address for Know Your Client (KYC) norms’ ofSebi.

PTI