The government today said the Unique Identification Authority of India (UIDAI) has suggested formation of a working group with participation of market regulator SEBI to work out modalities for recognising 'Aadhaar' for Know Your Client purposes in securities market.

In a written reply to the Rajya Sabha, Minister of State for Finance Namo Narain Meena said that SEBI has constituted an internal working group with members of various departments to examine the proposal and formulate views.

"UIDAI has suggested constituting a joint working group of SEBI and UIDAI to work out the modalities for recognising Aadhaar as a proof of address and proof of identity from Know Your Client (KYC) purposes in securities market," he said.

The UID number will eventually form the basic universal identity over which registrars and agencies across India can build identity-based applications.

The project, known as 'Aadhaar' was rolled out last year and the government has already involved various stakeholders, including banks, for this purpose.

"Government of India, in December 2010 notified Aadhaar number issued by UIDAI as an offically valid document to satisfy KYC norms for opening of accounts with banking companies, financial institutions and initermediaries," Meena said.