Market regulator SEBI (Securities and Exchange Board of India) said investors can use Aadhaar cards as a valid address proof for their accounts with brokerage firms, mutual funds, portfolio managers and other capital market entities.
Aadhaar is a 12-digit individual identification number issued by UIDAI (Unique Identification Authority of India). Any individual, irrespective of age and gender, who is a resident in India and satisfies the verification process laid down by the UIDAI can enrol for Aadhaar.
Aadhaar is already allowed as a valid identity proof document in the capital market. It is also allowed as valid ID proof and address proof documents in the KYC (know your customer) procedures for opening of bank accounts, insurance, telecom and many other services.
Aadhaar can now be used as ‘Proof of Address for Know Your Client (KYC) norms’ of capital market, SEBI said in a circular issued on 13th August to mutual funds, brokers, depository participants, portfolio managers, alternative investment funds and collective investment schemes, among other market entities. SEBI has informed the same to Association of Mutual Funds in India (AMFI) and KYC Registration Agencies (KRAs).
“In consultation with UIDAI, Government of India, it has now been decided that the Aadhaar Letter issued by UIDAI shall be admissible as proof of address in addition to its presently being recognised as proof of identity,” SEBI said in a circular.
This circular—issued under Section 11(1) of the Securities and Exchange Board of India Act, 1992—is to protect the interests of investors in securities and to promote the development of, and to regulate the securities markets.