SEBI’s Digital Shield: Verified UPI Handles to Guard Investors from October 1

To facilitate online payments in India's capital markets, the Securities and Exchange Board of India (SEBI) has mandated all the registered intermediaries—brokers, mutual funds, portfolio managers, and investment advisors—to accept investor payments through verified UPI handles with the distinctive '@valid' suffix from October 1, 2025. The initiative aims to curb growing payment fraud and enhance investor trust as digital inclusion gains momentum.

 

Key Highlights:

 

Mandatory Verified UPI Accounts:

All SEBI-intermediaries registered are mandated to mobilize investor funds through new UPI IDs with the format (e.g., abc.brk@validhdfc), which are released only after bank and NPCI certification.

 

Exclusive Security Features:

Verified UPI accounts will display a "thumbs-up in a green triangle" icon to easily identify, especially useful for non-English speakers. Intermediaries will also need to generate QR codes with this icon for investors' convenience.

 

Investor Verification Tool

SEBI will launch the 'SEBI Check' app, where investors will be able to verify the authenticity of an intermediary's UPI ID and bank account by scanning a QR code or by manually inputting the UPI ID.

 

Transition Period:

The old UPI handle can be utilized together until 8th December 2025, and thereafter only the new verified handle will be acceptable for renewal and new investments.

 

No Impact on Active SIPs:

Existing SIPs will be able to continue with the existing modes of payment, but fresh or renewed SIPs will have to use the authenticated UPI handles.

 

Investor Choice Retained:

Investors can still pay through other means like NEFT, IMPS, RTGS, or cheques, but UPI payments need to go through the new verified handles.

 

National Awareness Campaign:

SEBI will initiate  two-year outreach programme on cybersecurity, security of digital payments, and fraud prevention topics.

 

Scope:

The regulation impacts nearly 9,000 intermediaries and provides up to ₹5 lakh per day payments for capital market trades. SEBI Chairman Tuhin Kanta Pandey underscored that this systemic measure is necessary because the number of retail investors is well over 130 million, and cyber crimes and impersonation cases are increasing. The regulator is even collaborating with app stores to whitelist only confirmed intermediary apps, further strengthening digital security. "Although we need to fight cyber fraud through systemic ways, this new framework will give assurance to the investors that they are investing at the correct location," SEBI Chairman Tuhin Kanta Pandey added. 

 

Source: Business Standard, Business Today, Economic Times Legal, The Hans India, The Hindu BusinessLine