SEBI’s New Verified UPI Mechanism

Source: IE

Context: SEBI has announced a new verified UPI ID system for registered market intermediaries, effective from October 1, 2025, to curb rising cases of cyber fraud and impersonation in securities transactions.

About SEBI’s New Verified UPI Mechanism:

• What It Is? A validated UPI payment framework for SEBI-registered intermediaries featuring exclusive UPI handles ending with @valid.

• A validated UPI payment framework for SEBI-registered intermediaries featuring exclusive UPI handles ending with @valid.

• Developed By: The system is being developed in coordination with the National Payments Corporation of India (NPCI), which operates the UPI platform.

• How It Works?

• Every registered intermediary (broker, mutual fund, etc.) will receive a unique UPI ID: username.category@validBank

E.g., abc.brk@validXYZ for a broker using XYZ Bank

• A “thumbs-up in green triangle” icon will appear when transacting with verified IDs. The system will integrate with the new ‘SEBI Check’ tool to verify UPI IDs and bank details via QR scan or manual entry.

• A “thumbs-up in green triangle” icon will appear when transacting with verified IDs.

• The system will integrate with the new ‘SEBI Check’ tool to verify UPI IDs and bank details via QR scan or manual entry.

• Key Features:

• Distinct suffixes indicate category: .brk for stock brokers .mf for mutual funds UPI IDs will only be allocated to genuine SEBI-registered entities. Visual authentication marks help users identify legitimate payees. ‘SEBI Check’ confirms both UPI ID and bank account/IFSC code authenticity.

• Distinct suffixes indicate category: .brk for stock brokers .mf for mutual funds

• .brk for stock brokers

• .mf for mutual funds

• UPI IDs will only be allocated to genuine SEBI-registered entities.

• Visual authentication marks help users identify legitimate payees.

• ‘SEBI Check’ confirms both UPI ID and bank account/IFSC code authenticity.

• Benefits:

• Investor Protection: Prevents fund diversion by fraudsters. Transparency: Allows clear identification of registered entities. Cybersecurity Boost: Cuts down fake UPI handles used for scams. Trust Restoration: Enhances confidence in digital transactions in the securities market. Mandatory Compliance: All intermediaries must adopt the system and older UPI IDs to be phased out.

• Investor Protection: Prevents fund diversion by fraudsters.

• Transparency: Allows clear identification of registered entities.

• Cybersecurity Boost: Cuts down fake UPI handles used for scams.

• Trust Restoration: Enhances confidence in digital transactions in the securities market.

• Mandatory Compliance: All intermediaries must adopt the system and older UPI IDs to be phased out.