The Securities and Exchange Board of India (SEBI) on 13th of August 2012 confirmed that the Aadhaar Number can be used by the investors as a valid address proof for their accounts. The market regulator allowed the investors for using their Aadhaar card in mutual funds, brokerage firms, portfolio managers and other capital market entities. The 12 digit unique Aadhaar number from UIDAI is already in use in the capital market as a valid ID proof document.
SEBI through a circular informed that Aadhaar is valid as a ‘Proof of Address for Know Your Client (KYC) norms’ of the capital market. The issued circular is for portfolio managers, mutual funds, depository participants, alternative investment funds, brokers and collective investment schemes, among other market entities. Passport, ration card, driving licence, PAN card, bank statement, voter ID card and utility bills have been allowed to as the valid address proof document in the capital market. SEBI has notified this to the Association of Mutual Funds in India (AMFI) and KYC Registration Agencies (KRAs).
The Aadhaar has already been in use as a valid proof of ID and address document in the opening of new bank accounts, telecom, insurance and various other services. UIDAI was started by the Indian government with the motive of providing every resident of this country, including NRIs and foreign citizen, with a unique 12 digit number linked to their biometric (iris scan, fingerprints, photograph) and demographic information. The UID was renamed to ‘Aadhaar’ number.