Capital markets regulator Sebi on Wednesday issued directives for sub-KYC consumer businesses to supply Aadhaar authentication companies to their shoppers for the aim of know your buyer (KYC).
This comes after the federal government final week notified 155 entities as sub-KUAs (KYC consumer businesses) to make use of Aadhaar authentication companies of the UIDAI (Distinctive Identification Authority of India).
In a round, the Securities and Alternate Board of India (Sebi) stated that these entities are required to enter into an settlement with a KUA and get themselves registered with UIDAI as sub-KUAs. The settlement on this regard can be as prescribed by UIDAI.
Additional, the sub-KUAs must comply with the method as could also be prescribed by the UIDAI every so often.
”The KUAs shall facilitate the onboarding of those entities as sub-KUAs to supply the companies of Aadhaar authentication with respect to KYC,” the regulator stated.
In Might 2020, the regulator listed the entities that may undertake e-KYC Aadhaar authentication. Sebi-registered intermediaries and mutual fund distributors, who need to undertake Aadhaar authentication companies via KUAs, are required to enter into an settlement with KUA and get themselves registered with UIDAI as sub-KUAs.