Press Information Bureau

Government of India

Ministry of Finance

 22-February-2011 16:39 IST

Making UID Mandatory for Securities Transactions

Unique Identification Authority of India (UIDAI) has suggested constituting a joint working group of Securities and Exchange Board of India (SEBI) and UIDAI to work out the modalities for recognizing ‘Aadhaar’ as a proof of address and proof of identity for Know Your Client (KYC) purposes in the securities market.

The Unique Identity number will eventually form the basic, universal identity infrastructure over which Registrars and Agencies across the country can build their identity-based applications. Government of India in December 2010 notified “Aadhaar” number issued by UIDAI as an officially valid document to satisfy KYC norms for opening of accounts with banking companies, financial institutions and intermediaries.

SEBI has constituted an internal group with members from various departments to examine the modalities for making UID applicable for KYC norms and to formulate their views.

This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question raised in Rajya Sabha today.

DSM/BY/S

Aadhaar as KYC proof: recognition for securities transactions proposed and modalities to be examined by a joint working group. Recommendation to recognise the Unique Identification number as proof of identity and address for securities market KYC, proposing a joint working group between the securities regulator and the national identification authority to determine modalities; the Unique Identification number is identified as the base identity infrastructure for registrars and agencies and has been declared an officially valid document for KYC purposes with banks and financial intermediaries, while the securities regulator has set up an internal group to examine implementation issues.