Sebi directs entities to make digital KYC accessible for disabled users

The market regulator has issued a revised set of frequently asked questions (FAQs) that provide detailed guidance for intermediaries to open accounts for individuals with disabilities

The Securities and Exchange Board of India (Sebi) has mandated that all regulated entities under its purview make their digital Know Your Client (KYC) processes accessible to persons with disabilities.

 

In line with this, Sebi has issued a revised set of frequently asked questions (FAQs) that provide detailed guidance for intermediaries on facilitating account opening for individuals with disabilities, as per a circular issued by the regulator earlier on Friday.

 

The move follows a Supreme Court ruling on April 30 this year which underscored the importance of ensuring equal access to financial services for persons with disabilities and directed that digital KYC processes be made inclusive.

 

The updated FAQs clarify that digital KYC services can be offered to persons with disabilities by adopting accessibility standards. Upon request, intermediaries must assist clients in completing live video KYC processes, using inclusive methods to verify the client's presence and identity.

 

If a person with a disability cannot blink or use typical facial recognition cues during video verification, intermediaries are permitted to use alternative measures. These may include recognizing head movements, displaying OTPs on screen, capturing real-time video recordings, and showing documents during the call, among other options.

 

Sebi further stated that if a person with a disability is unable to sign documents, a guardian may do so on their behalf, provided both the guardian and the individual meet the applicable KYC requirements. Thumb impressions will also be accepted if the e-KYC documents are properly e-signed.

 

The circular applies specifically to persons with disabilities and supports the regulator’s broader objective of enabling equal access to financial services through digital platforms. Intermediaries may also rely on KYC data from the Central KYC Registry, subject to the individual’s consent.

 

Sebi reaffirmed its commitment to inclusivity and urged intermediaries to follow the revised guidelines to ensure that digital financial services are fully accessible to all individuals, regardless of disability.