Aadhaar based eKYC Essential For Mutual Fund Investors
In the stock market, the news turns regarding Aadhaar based e-KYC process. Sebi has announced a circular about the process. This process is essential for domestic investors. It associated full details in its circular related to all terms & conditions to act as sub-KUA. These rules also apply for the objects listed with the UIDAI as KYC User Agency as well as for sub-KUA. Now, KYC is necessary to invest in mutual funds. So, Sebi said that Aadhaar based e-KYC will help the investors to provide KYC details.
The market regulator Sebi has stated in its circular as an investor can visit the AMC website to complete the e-KYC process by using the Aadhar. At this time, mutual fund distributors are required to execute Aadhaar authentication services. But, Sebi reported a provision for those publishers to follow the agreement with KUA. Further, the distributors should be enrolled with UIDAI as Sub-KYC User Agency. Because Sebi supposes Aadhaar authentication service holders as sub-KUAs.
The main aim of this process is to increase efficiency and reduce time to complete KYC of the client by using the Aadhaar based e-KYC process. KUA will send a list of sub-KYC names to Sebi.
Furthermore, UIDAI (Unique Identification Authority of India) advice that the agreement will assign between KUA and sub-KUA. Besides, sub-KYCs also agree with Aadhaar related regulations and guidelines. Sebi requested MF agencies to create awareness in the investors about Sebi’s new circular.
Process of Aadhaar OTP eKYC
Sebi turned electronic Know Your Customer as a mandate for domestic investors. There are two ways to complete the KYC process one is an online portal and helped investors e-KYC process. The merchants who registered as sub-KUA should divert investors to the KUA web portal. Through this portal, investors can simply confirm their identification by using the Aadhaar number and OTP.