In a decisive step toward boosting security and transparency in securities market transactions, the Securities and Exchange Board of India (SEBI) has issued a circular mandating the use of standardised, validated UPI IDs for all SEBI-registered investor-facing intermediaries. The regulator also announced that it is developing a new verification tool called “SEBI Check,” aimed at helping investors verify payment credentials before transacting.
According to the circular, all intermediaries, including brokers, mutual funds, and portfolio managers, will be required to obtain unique UPI IDs that follow a standardised format (e.g., abc.brk@validhdfc, xyz.mf@validicici). These IDs must carry a suffix representing the intermediary type (for instance, .brk for brokers or .mf for mutual funds) and use the NPCI-issued handle @valid, linked to certified syndicate banks.
Transactions made to these verified UPI IDs will show a ‘thumbs-up inside a green triangle’ icon, indicating a secure and SEBI-verified destination.
To provide an additional layer of security and help investors verify the authenticity of an entity before proceeding with any financial transaction, SEBI is in the process of developing a functionality named “SEBI Check”.
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
Standardised, validated, and exclusive UPI IDs will be available for investors to make payments to intermediaries starting from October 1, 2025. SEBI has directed intermediaries and market infrastructure institutions to run broad awareness campaigns.
This initiative follows growing concerns around online scams, spoofed UPI handles, and impersonation. By standardising payment credentials and providing real-time verification tools, SEBI aims to significantly reduce the risk of fraud and improve investor trust in digital transactions across capital markets. For details, visit https://www.sebi.gov.in/
