Ministry of Finance, vide its notification dated 13th July, 2022 has notified 155 reporting entities as sub-KUA to use Aadhaar authentication services of UIDAI under section 11A of the Prevention of Money-laundering Act, 2002.
Further, SEBI vide its Circular dated 20th July, 2022 notified same to all the Registered Intermediaries. SEBI in the Circular said that 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 05th November, 2019 and as may be prescribed by UIDAI from time to time.
The KUAs shall facilitate the onboarding of these entities as sub-KUAs to provide the services of Aadhaar authentication with respect to KYC.
It is to be noted that SEBI issued Circular dated 05th November, 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 and subsequently SEBI Circular dated 12th May, 2020 listed the entities who shall undertake Aadhaar Authentication service of UIDAI as KYC user agency (KUA) in securities market.
This Circular is applicable to KYC Registration Agencies (KRAs), Stock Brokers through Stock Exchanges, Depository Participants (DPs) through Depositories, Mutual Funds (MFs) and AMCs through AMFI, Portfolio Managers (PMs), Collective Investment Schemes (CIS), Investment Advisors, Registrar and Transfer Agents, Custodians and Alternate Investment Funds (AIFs).
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