Thumbs Up for Security! SEBI’s New UPI System Shields Investors

The Securities and Exchange Board of India (SEBI) has launched a new system to enhance investor protection and prevent fraudulent raising of funds. From October 1, 2025, SEBI will be launching validated UPI handles and a digital authentication facility named 'SEBI Check' to ensure safe transactions in the security market.

The New UPI Address System

Structured UPI handles with a legible username and a suffix identifying a category, such as ".brk" for brokers or ".mf" for mutual funds, must be used by SEBI-registered intermediaries.

Handles will be exclusively allocated by the National Payments Corporation of India (NPCI) and used as the only approved means for payment by the investor.

A visual verification mechanism will display a distinctive "thumbs-up in a green triangle" symbol on payment to a verified UPI handle, confirming its authenticity.

SEBI Check: A Digital Verification Mechanism

Investors may verify UPI IDs by scanning the QR code or entering the UPI handle.

The mechanism will give the information including the associated bank account number and IFSC code of the registered intermediary.

Lack of verification icon will serve as a warning against unapproved transactions.

Effect on Investor Security

The step will discourage impersonation and unapproved gathering of funds by unregistered parties.

SEBI is working in collaboration with app marketplaces to display only authenticated financial apps.

Investor awareness campaigns will be launched to make users conscious of secure transactions.

Sources: Moneylife, Firstpost, Live Mint, MSN News.