Redact promoters' Aadhaar info from docs: Sebi to investment banks

The markets regulator has asked investment banks to redact Aadhaar details of promoters from hundreds of offer documents filed by companies with Securities and Exchange Board of India (Sebi) and exchanges. The move comes after Aadhaar governing body UIDAI pulled up the market regulator for the publication of such confidential information in publicly available documents in contravention of the Aadhaar Act, said three people in the know.

Sources said some promoters had reached out to government authorities, expressing concerns over misuse of their Aadhaar details as these offer documents were publicly available on Sebi and exchange’s sites.

Last month, Sebi issued a letter to the merchant banking industry body Association of Investment Bankers of India (AIBI), asking merchant banks to act upon the request of UIDAI and to redact Aadhaar details of promoters from offer documents and to provide revised documents to Sebi and stock exchanges.

“Sebi is in receipt of a letter dated January 19, 2023 from Unique Identification Authority of India, ministry of electronics and information technology requesting to redact the Aadhaar details of the promoters that were published in DRHP, RHP and Prospectus and uploaded on the website of exchanges and SEBI between November 10, 2018 and January 14 , 2022 as the same is in contravention of Aadhaar Act 2016 Regulation,” said the the letter sent by AIBI to merchant banks, a copy of which ET has reviewed.

Sebi has given a deadline of March 31 to AIBI and its members to execute the Adhaar redaction.