Aadhar cards seem to be gaining ground. The card issued along with 12 digit unique identification number by the government is a valid proof of address to operate accounts with brokerage firms, mutual funds, portfolio managers and capital market entities, India’s securities market regulator has said. [via]
This is another significant announcement from Government bodies hailing Aadhar as a valid address proof. Prior to this Chandigarh administration recognized Aadhar as a valid proof for various welfare schemes being run by departments, boards, corporations, public undertakings and agencies in July this year. Aadhaar cards can also be used to open bank accounts and avail gas connections.
The Securities and Exchange Board of India’s (SEBI) move to recognize unique identification (UID/ Aadhaar) card is certainly a good step for the Asset Management Companies (AMCs), and it will help them to streamline the Know Your Customer (KYC) process and reducing operational challenges.
Earlier in April this year, Government had initiated a project to integrate both Aadhar and PAN card database with the intention of doing away with fake PAN cards and ensuring an accurate biometric data. However, even after SEBI decision to recognize Aadhar as a valid address proof, it is merely an additional facility for KYC. PAN will still be required for KYC purpose because it is a SEBI and Finance Ministry guideline. It is worth noting that now PAN would work as a common financial market denominator and the Unique Identification Authority of India (UIDAI) will be a KYC enabler for investor’s accounts with Asset Management Companies.