UIDAI to work with SEBI on making `Aadhar' mandatory for securities transactions

The Unique Identification Authority of India (UIDAI) has suggested constituting a joint working group with the Securities and Exchange Board of India (SEBI) to work out the modalities for making 'Aadhaar' the basis of identity for securities transactions.

The Unique Identity Number or Aadhar would be the proof of address and proof of identity for Know Your Client (KYC) purposes in the securities market, minister of state for finance Namo Narain Meena informed the Rajya Sabha in a written reply.

The UID number will eventually form the basic, universal identity infrastructure over which registrars and agencies across the country build their identity-based applications, the minister said.

The government had, in December 2010, notified `Aadhaar' number issued by UIDAI as a valid document to satisfy KYC norms for opening of accounts with banking companies, financial institutions and intermediaries.

SEBI also 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.

The UID or `Aadhar" is a unique 12-digit identity number that will be given to every permanent resident of India, irrespective of their age, gender or citizenship. The scope of 'Aadhar' is expected to be extended to include persons of Indian origin and non-resident Indians.