For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

SEBI Allows Aadhaar Based e-KYC For Mutual Fund Investors; Steps Here

By Staff
|

In a circular dated 5 November 2019, the Securities and Exchange Board of India (SEBI) permitted and issued guidelines for mutual fund distributors and registered intermediaries of the regulator to use Aadhaar based e-KYC facility to complete the KYC (know your customer) procedure of their clients.

SEBI Allows Aadhaar Based e-KYC For Mutual Fund Investors; Steps Here

 

The circular said, "entities in the securities market, as may be notified by the Central Government, shall be allowed to undertake Aadhaar Authentication under section 11A of the PMLA. SEBI Registered intermediaries for reasons such as online onboarding of clients, customer convenience, increased efficiency and reduced time for client on-boarding would prefer to use Aadhaar based e-KYC facility to complete the KYC of the client."

The regulator further specified that businesses that wish to use the Aadhaar authentication process would have to partner with entities registered with UIDAI as "KYC user agency."

"These entities would be registered with UIDAI as KYC user agency ("KUA") and shall allow all the SEBI registered intermediaries/ mutual fund distributors to undertake Aadhaar Authentication of their clients for the purpose of KYC through them," SEBI said.

"The SEBI registered intermediaries / mutual fund distributors, who want to undertake Aadhaar authentication services through KUAs, shall enter into an agreement with any one KUA and get themselves registered with UIDAI as sub-KUAs. The agreement in this regard shall be as may be prescribed by UIDAI," it added.

Steps for online portal based investors to complete e-KYC process:

  1. Visit portal of KUA or the SEBI registered intermediary which is also a Sub-KUA to open account/invest through an intermediary.
  2. For Aadhaar e-KYC, the investor is redirected to KUA portal.
  3. The investor enters the Aadhaar number or Virtual ID and provides consent on KUA portal.
  4. The investor receives OTP on his/her mobile number registered with Aadhaar from UIDAI and enters the OTP on KUA portal for Aadhaar e-KYC.
  5. KUA will receive the e-KYC details from UIDAI upon successful Aadhaar authentication which will be further forwarded to Sub-KUA in an encrypted format (using KUAs own encryption key) and will be displayed to the investor on the portal.
  6. The investor will fill the additional detail as required under KYC format.
  7. SEBI registered intermediary will upload additional KYC details to the KUA.

Read more about: sebi mutual funds kyc aadhaar ekyc
Story first published: Wednesday, November 6, 2019, 17:21 [IST]
Company Search
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more