Unified Payment Interface (UPI) Mechanism by SEBI

The Securities and Exchange Board of India (SEBI) is implementing a structured UPI address mechanism to address the issue of unregistered entities misleading investors in the stock market.

Objective

• Streamline fund collection by registered intermediaries from investors.
• Enable identification of legitimate SEBI-registered intermediaries.
• Enhance investor protection and combat unauthorized money collection in the securities market.

Implementation Details

• Introduction of a structured and validated UPI address mechanism with an exclusive “@valid” handle for registered intermediaries.
• Deadline set for October 1, 2025, for the introduction of these facilities.
• Validated UPI handle allocated by the National Payments Corporation of India (NPCI).

UPI Address Structure

• Username will include a readable name chosen by the intermediary.
• Mandatory suffix to identify intermediary category: 
  • ‘.brk’ for stock brokers
  • ‘.mf’ for mutual funds
• Example: For ABC Ltd., a broker with XYZ bank, UPI ID would be abc.brk@validXYZ.

Investor Features

• Visual cue for legitimate transactions: “thumbs-up inside a green triangle” icon.
• Structured UPI handle use is optional for investors; other payment methods remain available.
• Existing ongoing SIPs remain unaffected, but new SIPs must use new UPI IDs post October 1, 2025.

SEBI Check Tool

• Allows verification of UPI IDs via QR code or manual entry.
• Confirms intermediary bank details such as bank account number and IFSC.
• Available from October 1, 2025.
• Enhances verification and authenticity before financial transactions.

SEBI Chairman Tuhin Kanta Pandey emphasized the mechanism's role in improving transaction safety and accessibility in the securities market.