SEBI circular dated 8th September, 2020 allowing National Stock Exchange (NSE) to carry out e-KYC Aadhar authentication of the UIDAI subject to such compliance as may be specified. Gist of SEBI circular follows:
SEBI vide circular No. SEBI/HO/MIRSD/DOP/CIR/P/2020/80 dated May 12,
2020 permitted eight entities to undertake Aadhaar Authentication service of UIDAI subject to compliance of the conditions as laid down in this regard.
- Government of India, Department of Revenue (DoR), vide Gazette
Notification No. G.S.R. 516(E) dated August 20, 2020, notified “National
Stock Exchange of India Limited” (NSE) as per the recommendation by
Unique Identification Authority of India (UIDAI) and SEBI to undertake Aadhaar authentication service of the UIDAI under section 11A of the Prevention of Money-laundering Act, 2002. In view of the same, National Stock Exchange of India Limited shall undertake Aadhaar Authentication service of the UIDAI subject to compliance of the conditions as laid down in this regard.
- The Stock Exchanges and Depositories are directed to:
a. bring the provisions of this circular to the notice of the Stock Brokers,
Depository Participants and also disseminate the same on their websites.
b. make necessary amendments to the relevant bye-laws, rules and
regulations for the implementation of the above decision in co-ordination with one another to achieve uniformity in approach.
c. communicate to SEBI, the status of the implementation of the provisions of this circular in the Monthly Development Report of the following month; and
d. monitor the compliance of this circular.
IRDA has mandated vide its circular dated 21st October 2013 that e-KYC services of UIDAI can be accepted as valid KYC documents by all the insurance companies. This has been made possible pursuant to the amendment to the Prevention of Money Laundering Act wherein UIDAI identity has been made acceptable for KYC purposes. Further with UIDAI going the e-way by adopting e-UIDAI it is but natural that a boost has been given to the KYC process of UIDAI. IRDA circular is given below
|e-KYC services of UIDAI
Attention is drawn to the following circulars issued by the Authority:
i. IRDA/F&I/CIR/AML/151 /07/2011 dated July 5, 2011 wherein insurers were informed of the amendments to the Prevention of Money Laundering (Maintenance of Records) Amendment Rules 2010 by which “the letter issued by the Unique Identification Authority of India containing details of name, address and Aadhaar number” was considered as officially valid document that may be obtained as part of Customer Identification Procedure, for the purposes of identification.
ii. Master Circular 2010 on AML/CFT guidelines clause 3.1.1 (iv) wherein it has been indicated that “No further documentation is necessary for proof of residence where the document of identity submitted also gives the proof of residence.”
2. You may be aware that the Unique Identification Authority of India (UIDAI) has operationalized e-KYC services recently. The acceptability of these services for KYC purposes under the Prevention of Money-laundering (Maintenance of Records) Rules, 2005, was discussed with the Department of Revenue, Ministry of Finance and operational issues were taken up with the insurers.
3. Now, following confirmation from the Ministry that e-KYC services may be accepted as a valid process for KYC verification under the Prevention of Money-Laundering (Maintenance of Records) Rules, 2005, it has been decided that e-KYC services of UIDAI is acceptable for KYC verification subject to specific and express consent of the customer to access his/her data through UIDAI system.
4. It may further be noted that in cases where e-KYC services are availed for KYC verification, certification requirements under clause 3.1.1 (iv) of the Master Circular (2010) AML/CFT guidelines shall be deemed to be complied with.
5. Insurers may take note of the above.