SEBI to introduce ‘@valid’ UPI IDs, ‘SEBI check’ mechanism to protect investors against payments fraud

The UPI address will feature the exclusive “@valid” handle for all-Sebi registered investor-facing intermediaries. These validated handles will be exclusively allocated by the National Payments Corporation of India (NPCI) only for payment collection by SEBI-registered intermediaries.

sebi Securities and Exchange Board of India

Securities and Exchange Board of India (Source: File)

To enhance investor protection and combat unauthorised money collection, the Securities and Exchange Board of India (Sebi) on Wednesday announced it will introduce a structured and validated Unified Payment Interface (UPI) address mechanism for its registered intermediaries.

The UPI address will feature the exclusive “@valid” handle for all-Sebi registered investor-facing intermediaries. These validated handles will be exclusively allocated by the National Payments Corporation of India (NPCI) only for payment collection by SEBI-registered intermediaries.

The new mechanism will provide investors with the option to transfer funds directly to the requisite bank accounts of intermediaries that have been validated with Sebi. The transfer of funds through this process will assure investors that their payments are being made to the verified and registered market intermediaries.

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The handle will feature a unique and exclusive identifier, “@valid”, combined with the name of the self-certified syndicate bank. For example, for a registered broker ABC Ltd, having an account with XYZ bank, the exclusive UPI ID would be – abc.brk@validXYZ.

It would be mandatory for intermediaries to obtain and make available this structured UPI address to their investors, Sebi said.

The regulator said the new UPI address structure will help in addressing the growing issue of impersonation and enhance investor confidence.

“This innovative mechanism is set to significantly improve the safety and accessibility of financial transactions within the securities market by providing a verified and secure payment channel,” Sebi Chairman Tuhin Kanta Pandey said.

‘SEBI Check’ additional security layer for payments

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Besides, the regulator said it was developing a new functionality called ‘SEBI Check’ to provide an additional layer of security and help investors verify the authenticity of an entity before proceeding with any financial transaction.

This functionality will allow investors to verify the authenticity of UPI IDs either by scanning a QR code or by entering the UPI ID manually. Through this, investors can confirm the bank details such as bank account number and Indian Financial System Code (IFSC) of a registered intermediary.

The regulator said that the ‘SEBI check’ tool will add a vital layer of security, allowing investors to verify an entity’s authenticity before any financial transaction.

Sebi said that validated UPI address and ‘SEBI Check’ will be available to users from October 1, 2025.

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