SEBI vide its Circular dated 8th February, 2023 issued a circular regarding allowing the entities to use e-KYC Aadhar Authentication services of UIDAI in the securities market as sub-KUA.
The SEBI issued Circular No. SEBI/HO/MIRSD/DOP/CIR/P/2019/123 dated November 05, 2019 detailing the e-KYC Authentication facility, by entities in the securities market for Resident Investors.
Consequently, 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. 446 (E) dated January 30, 2023 has notified another 39 reporting entities to use Aadhaar authentication services of UIDAI. A copy of the notification is attached in Annexure A of the given circular.
The above mentioned entities must 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. The KUAs shall facilitate the onboarding of these entities as sub-KUAs to provide the services of Aadhaar authentication with respect to KYC.
This Circular is applicable All Intermediaries registered with SEBI under Section 12 of the Securities and Exchange Board of India Act, 1992 and Stock Exchanges and shall come into
force with immediate effect.
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