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.

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