SEBI: Permits National Stock Exchange of India Limited (NSE) to undertake e-KYC Aadhaar Authentication service of UIDAI in Securities Market.

Securities and Exchange Board of India (SEBI) has issued a circular on Tuesday in which it also authorized National Stock Exchange of India Limited (NSE) for undertaking Aadhaar Authentication service of the Unique Identification Authority of India (UIDAI).

In an earlier circular issued by the SEBI on 12th May 2020, it authorised eight entities to undertake the Aadhaar Authentication service of the Unique Identification Authority of India (UIDAI) subject to compliance of certain conditions. The Eight Entities that were allowed to undertake the Aadhaar Authentication service of UIDAI included-

1. Central Depository Services (India) Ltd. (CDSL).
2. National Securities Depository Ltd. (NSDL).
3. Bombay Stock Exchange (BSE).
4. CDSL Ventures Limited (CVL).
5. NSDL Database Management Limited (NDML).
6. NSE Data and Analytics. 
7. Computer Age Management Services (CAMS).
8. CAMS Investor Services.

The Gazette notification on August 20, 2020, of Department of Revenue(DoR), Government of India 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.”

SEBI directed its Stock Exchanges and Depositories to inform all the Stock Brokers, Depository Participants about the provisions of this new Circular of SEBI and should also disseminate the same on their websites.

And SEBI also directed them to make necessary amendments in the relevant bye-laws, rules and regulations for the implementation of the above decision in coordination with one another to achieve uniformity in approach. Lastly, there must be communication made to SEBI from time to time about the status of the implementation of the provisions of this circular in the Monthly Development Report of the following month and should also monitor the compliance of this circular.

SEBI issued this circular in the exercise of its powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities markets.

With Warm Regards,

CL Bureau.