Last week, SEBI has issued a circular in which it has revived Aadhaar based eKYC for mutual funds. However, the circular does not specify any upper limit on such investments.
Experts believe that the limit of Rs.50,000 under Aadhaar based eKYC still exists. Ravikumar Somasi, General Manager, Karvy Fintech is of the view that while there is a cap of Rs.50,000 per fund house per annum on OTP based Aadhaar eKYC, there is no limit if investor opt for biometric authentication version of eKYC, as the IPV too is completed. “This circular refers to all the earlier circulars wherein we got the regulatory guidance,” Somasi added.
IFAs can register with a KYC user agency (KUA) as a sub-KUA to carry out Aadhaar based eKYC of their clients. However, distributors will have to ensure that the Aadhaar number is not stored anywhere. Wherever required, only the last four digits of Aadhaar number has to be displayed.
While distributors can direct their clients to the website of the KUA to complete OTP based Aadhaar authentication, they can ensure completing biometric eKYC through whitelisted devices.
