SEBI Allows NSE for Aadhaar Authentication for e-KYC

The Securities and Exchange Board of India has allowed the National Stock Exchange (NSE) to undertake the Aadhaar authentication service of the UIDAI for e-KYC requirements.

The development comes after the Department of Revenue in August notified the National Stock Exchange of India Limited (NSE) as per the recommendation by the 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, the National Stock Exchange of India Limited shall undertake Aadhaar authentication service of the UIDAI, subject to compliance with the conditions as laid down in this regard," a SEBI circular said on Tuesday.

The SEBI directed the stock exchanges and depositories to bring the provisions of this circular to the notice of stockbrokers, depository participants, and also disseminate the same on their websites, make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision in coordination with one another to achieve uniformity in approach.

It also asked the bourses and depositories to communicate to the SEBI the status of the implementation of this circular in the Monthly Development Report of the following month and monitor compliance.