CIRCULAR CIR/MIRSD/29/2016 January 22, 2016 1. All Recognized Stock Exchanges

Securities and Exchange Board of India 

 

2. Stock Brokers through Recognized Stock Exchanges

3. All recognised Depositories
 4. Depository Participants through Depositories
 5. Association of Mutual Funds in India
6. Mutual funds through AMFI
7. Portfolio Managers
 8. KYC Registration Agencies (KRAs)
 9. Alternative Investment Funds (AIFs)
10. Collective Investment Schemes (CIS)
11. Custodians Dear Sir/Madam,

Sub: Know Your Client Requirements - Clarification on voluntary adaptation of Aadhaar based e-KYC process

1. The Hon'ble Supreme Court, in Writ Petition (Civil) No. 494 of 2012 in the matter of Justice K.S.Puttaswamy (Retd.) & Another vs Union of India & Others, vide order dated August 11, 2015 and October 15, 2015 directed that the usage of the Aadhaar card as issued by the Unique Identification Authority of India (UIDAI) is voluntary. In view of the said orders, the usage of Aadhaar card is optional and purely on a voluntary basis, subject to the final judgment of the Hon’ble Supreme Court in the aforesaid petition. 2. SEBI circular dated October 8, 2013, enables Aadhaar based e-KYC service offered by UIDAI for KYC verification on authorisation by the client to the intermediary on a voluntary basis. Clarification on certain operational aspects of the said circular is provided at Annexure A. 3. It may be noted that the provisions laid down under the Prevention of MoneyLaundering Act, 2002, Prevention of Money-Laundering (Maintenance of Records) Rules, 2005, SEBI Master Circular on Anti Money Laundering (AML) dated December 31, 2010 and SEBI Circular on AML dated March 12, 2014 and relevant KYC circulars issued from time to time shall continue to remain applicable. ¼ããÀ¦ããè¾ã ¹ãÆãä¦ã¼ãîãä¦ã ‚ããõÀ ãäÌããä¶ã½ã¾ã ºããñ¡Ã Securities and Exchange Board of India Page

This clarificatory circular is issued in exercise of the 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 market. Yours faithfully, D Rajesh Kumar Deputy General Manager 022-26449242 Email: rajeshkd@sebi.gov.in Encl: Annexure A – Clarification on voluntary adaptation of Aadhaar based e-KYC process