SEBI Unveils Validated UPI Handles and 'SEBI Check' Tool To Strengthen Investor Protection
Moneylife Digital Team 11 June 2025
Market regulator Securities and Exchange Board of India (SEBI) has announced a major initiative to enhance investor protection and curb fraudulent fund collection practices in the securities market. Effective 1 October 2025, SEBI will implement a new mechanism involving structured and validated unified payment interface (UPI) handles, alongside a digital tool named 'SEBI Check.'
 
This initiative comes amid growing concerns over unregistered entities misleading investors and collecting funds without proper authorisation. The new system is aimed at providing a secure and verifiable payment channel that enables investors to distinguish between genuine SEBI-registered intermediaries and fraudulent players.
 
At the heart of this reform is a mandatory UPI address format designated for all SEBI-registered, investor-facing intermediaries. These addresses will include a readable username followed by a clear suffix that identifies the intermediary’s category such as '.brk' for brokers or '.mf' for mutual funds along with a unique '@valid' handle. These handles will be allocated exclusively by the National Payments Corporation of India (NPCI) and can only be used for collecting payments from investors.
 
SEBI has also introduced a visual verification mechanism to enhance transaction transparency. Whenever an investor initiates a payment to a validated UPI handle, a distinctive 'thumbs-up inside a green triangle' icon will appear, confirming the legitimacy of the recipient. Intermediaries are also required to issue QR codes that prominently display this icon, making it easier for investors to verify payment details before proceeding.
 
Complementing this payment authentication framework is the launch of 'SEBI Check,' a tool that will allow investors to verify the authenticity of UPI IDs. The tool will provide the option to scan a QR code or manually enter the UPI ID, enabling users to confirm details such as the associated bank account number and the Indian Financial System Code (IFSC) of the registered intermediary.
 
By introducing this dual mechanism, SEBI aims to significantly improve investor security, ensure that payments are directed only to authorised entities and instil greater confidence in digital transactions within the capital market. The absence of the thumbs-up icon during a transaction will serve as a visual warning, cautioning investors against proceeding with the payment.
 
Both. the validated UPI address system and the SEBI Check tool, will be operational from 1 October 2025.
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