Sebi Directs Sub-KYC Person Companies to Present Aadhaar Authentication

Capital markets regulator Sebi on Wednesday issued directives for sub-KYC consumer companies 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 companies) to make use of Aadhaar authentication companies of the UIDAI (Distinctive Identification Authority of India).

In a circular, 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 the UIDAI.

Additional, the sub-KUAs must observe the method as could also be prescribed by the UIDAI infrequently.

“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 Could 2020, the regulator listed the entities that may undertake e-KYC Aadhaar authentication. Sebi-registered intermediaries and mutual fund distributors, who wish 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.

In the meantime, the Distinctive Identification Authority of India (UIDAI) has reportedly known as out for 20 hackers who can be tasked to detect and repair vulnerabilities within the safety system that guards the Aadhaar information of Indian residents as part of “bug bounty programme”. A report says that these “moral” hackers can be given entry to the UIDAI’s Central Identities Information Repository (CIDR) that shops the Aadhaar information of 1.32 billion Indians. There have been cases prior to now the place Aadhaar particulars of individuals had been leaked on the web.