Introduction
On July 31, 2025, Securities and Exchange Board of India (“SEBI”) issued a circular (“Circular”), with immediate effect, whereby it mandated all the SEBI registered intermediaries and Market Infrastructure Institutions (“MIIs”) to adopt measures ensuring digital inclusivity of differently-abled people.
The Circular was issued against the backdrop of the Hon’ble Supreme Court of India’s order in the matter of Pragya Prasun and Ors. vs. Union of India and Ors wherein digital accessibility was recognized as a constitutional right.
Background
Observations of the Apex Court
The apex court, in the above matter, dealt with writ petitions under Article 32 of the Constitution of India alleging violation of Article 21 on the grounds that the digital initiatives adopted by the Central Government authorities, regulators and the entities regulated by them are not adapted to fairly accommodate people with disabilities. In both the petitions, the petitioners alleged that the digital KYC/e-KYC/video KYC processes are not designed keeping in view the accessibility needs of persons with disabilities, leading to not only violation of provisions of Rights of People with Disability Act, 2016 (“RPD Act”) but also of Article 21 of the Constitution of India.
The Hon’ble Supreme Court observed that while digital KYC/e-KYC/video KYC have been mandated by the regulators considering the drive towards digitizing the otherwise majorly physical processes, the methods used for verification of the identity, such as live photographs, facial recognition, captcha, entering of OTP and random questions for verification fall short of addressing the accessibility issues faced by differently abled people while independently accessing such services. It was further noted that India is a signatory to the United Nations Convention on Rights of People with Disabilities (“UNCRPD”) and has adopted the Incheon Strategy which aims to, inter alia, create inclusive environment for persons with disabilities.
Additionally, sections 2(y) and 42 of the RPD Act were also cited to state that it’s the obligation of the Government machineries to ensure that the rights of persons with disabilities are at par with that of others. Furthermore, it was noted that the National Policy for Universal Electronic Accessibility, 2013 mandates facilitation of equal and unhindered access to electronics and Information and Communication Technologies (“ICTs”) products and services by differently abled persons.
1 SEBI/HO/ITD-1/ITD_VIAP/P/CIR/2025/111, available at https://www.sebi.gov.in/legal/circulars/jul-2025/rights-of-persons-with-disabilities-act-2016-and-rules-made-thereunder-mandatory-compliance-by-all-regulated-entities_95745.html
2 2025 SCCOnline SC 993, dated April 30, 2025.
3 While in Writ Petition 289 of 2024 (Pragya Prasun and Ors.), the petitioners were acid attack survivors suffering facial disfigurement and severe eye burns, the petitioner in Writ Petition 49 of 2025 (Amit Jain) was a person with 100% blindness.
4 Please refer to https://depwd.gov.in/en/policy/uncrpd/
5 includes the principle of reasonable accommodation which means necessary and appropriate modification and adjustments, without imposing a disproportionate or undue burden in a particular case, to ensure to persons with disabilities the enjoyment or exercise of rights equally with others.
6 deals with ‘Access to information and communication technology’ which requires the appropriate government to take measures to ensure that- (i) all contents available in audio, print and electronic media are in accessible format; (ii) persons with disabilities have access to electronic media by providing audio description, sign language interpretation and close captioning; (iii) electronic goods and equipment which are meant for everyday use are available in universal design.
7 Please refer to https://www.meity.gov.in/static/uploads/2024/02/18rpr.pdf
Directions of the Apex Court
The Hon’ble Supreme Court gave the following directions to the Department of Telecommunications, Government of India (the “Government”), and to the Reserve Bank of India, Telecom Regulatory Authority of India, SEBI, Pension Fund Regulatory and Development Authority and Insurance Regulatory and Development Authority of India (collectively referred to as the “Regulatory Authorities”):
(a) The Regulatory Authorities and the Government shall appoint a nodal officer in every department responsible for digital accessibility compliance.
(b) All regulated entities must mandatorily undergo periodical accessibility audit by certified accessibility professionals and involve persons with blindness in user acceptance testing phase while designing any app or website or in case of any new feature being launched.
(c) The Regulatory Authorities must design their KYC templates or customer acquisition forms to capture disability type and percentage of the customer and appropriately record as part of the account records to provide them accessible services or reasonable accommodations.
(d) The Regulatory Authorities shall provide clear directions to all regulated entities to accept image of thumb impression during Digital KYC process.
(e) The Regulatory Authorities shall provide options for sign language interpretation, closed captions, and audio descriptions for visually and hearing-impaired users.
(f) The Regulatory Authorities shall develop alternative formats including Braille, easy-to-read formats, voice-enabled services, to disseminate government notifications and deliver public services, ensuring accessibility for all.
(g) All regulated entities shall procure or design devices or websites/applications/software in compliance of accessibility standards for ICT products and services as notified by Bureau of Indian Standards.
(h) The Regulatory Authorities shall ensure that online services including e-governance platforms, digital payment systems, and e-launching platforms, are accessible to persons with disabilities, thereby fostering a barrier-free digital environment.
(i) The Regulatory Authorities shall ensure that all websites, mobile applications and digital platforms comply with the Web Content Accessibility Guidelines (WCAG) 2.1 and other relevant national standards, such as the Guidelines for Indian Government Websites. It shall be mandatory for all Government websites to adhere to Section 46 of the RPD Act, 2016, which requires both electronic and print media to be accessible to persons with disabilities.
(j) The Regulatory Authorities shall issue appropriate guidelines to develop and implement a mechanism where customers who have already completed their KYC process with one regulated entity may authorize the sharing of their KYC information with other entities through the Central KYC Registry (“CKYCR”).
8 “Regulated Entities” mean all such individuals/firms/entities who are registered with the respective Regulatory Authorities.
(k) The Regulatory Authorities shall establish a dedicated grievance redressal mechanism for persons with disabilities to report accessibility issues.
(l) The Regulatory Authorities shall establish a mechanism for human review of rejected KYC applications in cases where accessibility-related challenges prevent successful verification. A designated human officer shall be empowered to override automated rejections and approve applications on a case-by-case basis.
(m) The Regulatory Authorities shall establish dedicated helplines for persons with disabilities, offering step-by-step assistance in completing the KYC process through voice or video support.
(n) The Regulatory Authorities should mandate inclusion of disability awareness and training modules as part of e-learning modules for officials of regulated entities for better sensitization of officials.
Circular
In view of the apex court’s directions, SEBI directed the registered intermediaries and MIIs to undertake following activities:
Institutional Arrangement
(a) Compliance with the Circular shall be reviewed and approved by managing director or managing partner or proprietor of the regulated entity.
(b) The regulated entity needs to designate one of its senior officers as the Nodal Officer (“NO”) for ensuring digital accessibility compliance. In the absence of an officially designated NO, the Compliance Officer or the Proprietor shall be deemed to be the Nodal Officer for ensuring digital accessibility compliance.
(c) The NO shall, inter alia, be responsible for the following:
- ensure digital accessibility for every investor;
- conducting accessibility audits;
- mitigation of accessibility audit findings;
- implementation of accessibility guidelines;
- timely redressal of grievance; and
- serve as the contact point for SEBI in any matter pertaining to digital accessibility
(d) The regulated entities have to ensure that emails, helpline, and web forms must be user-friendly for specially abled people and provide for escalation of issues to their senior officers.
Web and document Accessibility
(a) Ensure that the digital platforms of the regulated entities include features such as Indian Sign Language (ISL) videos, closed captioning, descriptive audio, and alternate text for images. For instance, an explainer video on KYC must include captions and ISL interpretation.
(b) All circulars, notices, and investor documents published on the Digital Platforms in PDF or other formats must follow the standards – such as tagged PDFs, logical reading order, proper use of headings, and alt text. PDF techniques as covered in WCAG 2.1 and any updates thereafter should be followed.
Training and Awareness
The regulated entity has been mandated to ensure that the training modules as part of all internal training programs for staff and third-party service providers who are developing and publishing content for dissemination through digital platforms. The trainings should cover behavioral training, assistive tools, and inclusive experience for normal as well as specially abled users.
Registration and e-KYC
(a) The regulated entity has to ensure that the Digital KYC, e-KYC, and video KYC processes should include alternatives to accommodate differently abled users/clients. For example, human-assisted video KYC, allowing scanned document uploads, or voice-assisted KYC for visually impaired users and that the KYC and client registration forms shall include a mandatory field to indicate disability status and options to select specific provisions such as helpdesk call back for assistance.
(b) Further, no application of a specially abled client shall be rejected by the regulated entities without a review by a designated human officer and the said officer shall be empowered to override automated rejections and by-case basis, thereby ensuring equitable access to services of the regulated entities for specially abled people.
Procurement and technical compliance
(a) The regulated entity has to ensure that all newly developed/procured digital solutions conform to latest WCAG, IS17802, GIGW guidelines and the provisions of the RPD Act, 2016 and rules made hereunder.
(b) In case of Software as a Service (“SaaS”)/ customized SaaS products has been availed by the regulated entity, the vendors must seek conformance with the accessibility guidelines by conducting audit of their product/service in accordance with WCAG 2.1 (or latest) accessibility guidelines.
(c) Further, all the proposals and procurement contracts should have an evaluation criterion for accessibility readiness.
(d) Responsibility to ensure accessibility of a Digital Platform shall lie with the regulated entity.
Digital Accessibility audits and remediation
(a) Conduct annual accessibility audits of their digital platforms including websites, mobile apps, portals through professionals certified by International Association of Accessibility Professionals (“IAAP”) and a report shall be submitted to following authorities:
9 Available at https://www.w3.org/TR/WCAG20-TECHS/pdf.
Sr. No. | Regulated Entity | Reporting Authority |
1. | Stock Brokers/Depository Participants. | Stock Exchanges/Depositories. |
2. | Investment Advisors. | BSE Administration and Supervision Limited. |
3. | MIIs and Other Regulated Entities. | SEBI. |
(b) SEBI has also mandated milestones as per timelines stated below:
Sr. No. | Milestone | Expected date of Compliance |
1. | Submission of a list of digital platforms provided by the regulated entities to the investors. Submission of a compliance/action taken report pertaining to the clauses of the Circular. | Within 1 month from the date of the Circular i.e. by August 31, 2025. |
2. | Appointment of IAAP certified accessibility professionals as Auditor. | Within 45 days from the date of the Circular i.e. by September 13, 2025. |
3. | Conduct of Accessibility Audit for the digital platforms. | Within 3 months from the date of the Circular i.e. by October 31, 2025. |
4. | Remediation of findings from the audit and ensuring compliance with the Circular. | Within 6 months from the date of the Circular i.e. by January 31, 2026. |
5. | Compliance reporting on annual basis. | 30 days from the end of each financial year. |
Conclusion:
Issuance of the above circular by SEBI reinforces its stand towards creation of inclusive eco-system in securities markets and would aid India in fulfilling its goal and responsibility towards enhancing access to physical environment, public transportation, knowledge, information, and communication systems for persons with disabilities as resolved in the Incheon Strategy and UNCRPD.
While the industry is leading towards digitization for reducing cost, additional compliance requirements for modifications to the existing systems and audits, may lead to slow down of such initiatives.
Authors: Prakhar Dua (Principal Associate) and Suyash Bhandari (Senior Associate) are part of the Funds, Asset Management and Regulatory Practice at the Mumbai office.
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