 "sebi")
Capital markets regulator Sebi on Wednesday came out with a list of 39 entities, including Nirmal Bang Securities, NJ Indiainvest and Muthoot Securities, that can use e-KYC Aadhaar authentication services in the securities market as sub-KYC user agency.
This came after Sebi in May 2020 listed eight entities including BSE that can undertake Aadhaar Authentication service of UIDAI as KYC user agency (KUA) in the securities market. Further, a KUA can permit Sebi-registered intermediaries to undertake Aadhaar Authentication of their clients as sub-KUA for the purpose of KYC (Know Your Client).
Other entities listed by the regulator include Indbank Merchant Banking Services, Orbis Financial Corporation, Indo Money Securities, HSB Securities and Equities, Flourish Fincap and Vogue Commercial Company.
"The above mentioned entities shall enter into an agreement with a KUA and get themselves registered with UIDAI ( Unique Identification Authority of India) as sub-KUAs. The agreement in this regard shall be as prescribed by UIDAI... The KUAs shall facilitate the on-boarding of these entities as sub-KUAs to provide the services of Aadhaar authentication with respect to KYC," Sebi said in its circular on Wednesday.
The circular comes after the Government of India on January 30, 2022 notified 39 entities to use Aadhaar authentication services of UIDAI under the Prevention of Money Laundering Act, 2002. The move is aimed at checking money laundering.
In a separate circular, the regulator provided clarity on the applicability of the certain provisions of the NCS (Issue and Listing of Non-convertible Securities) Regulations, wherein the security is proposed to be issued for a fixed maturity and which should not have features such as option of conversion to equity, write-off, etc.
More From This Section
It said that only certain securities should necessarily be required to comply with the provisions for issuance and listing as specified in the NCS Regulations.
Those securities are permitted by RBI to issue such instruments; the instruments form part of non-equity regulatory capital; the instruments are perpetual debt instruments, perpetual non-cumulative preference shares or instruments of similar nature and instruments contain a discretion with the issuer or RBI for events including conversion into equity among others.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
