Starting October 1, 2025, the Securities and Exchange Board of India (SEBI) will introduce SEBI verified UPI handles for market payments, a groundbreaking move to enhance security in financial transactions for brokers, mutual funds, and other intermediaries. This initiative, announced on June 11, 2025, aims to curb cyber fraud and ensure investors pay only verified entities. With the launch of the ‘SEBI Check’ tool, investors can validate UPI IDs, adding a layer of trust to digital payments in India’s securities market. This article explores the details, benefits, and implications of this new framework. For the latest updates, visit our Breaking News section.

What Are SEBI Verified UPI Handles for Market Payments?

The SEBI verified UPI handles initiative mandates that all 8,200 SEBI-registered intermediaries, including brokers, mutual funds, and portfolio managers, adopt unique, validated UPI IDs for collecting investor payments. As reported by LiveMint, these IDs will feature a standardized format, such as ‘abc.bkr@validhdfc’ for a broker, issued by self-certified syndicate banks (SCSBs) and marked with a green thumbs-up icon in a triangle to confirm legitimacy. SEBI’s circular emphasizes that this system, effective from October 1, 2025, will combat impersonation and fraud by unregistered entities. For more on financial regulations, explore our Business section.

SEBI Chairman Tuhin Kanta Pandey highlighted the goal of reducing payment frauds, stating, “This ensures investors pay only to verified entities,” as noted in a report by The Times of India. The National Payments Corporation of India (NPCI) and SCSBs, such as HDFC and ICICI Bank, collaborated with SEBI to develop this framework, ensuring seamless integration with existing UPI systems. Investors can continue using other payment methods like NEFT or IMPS, but UPI transactions must use these verified handles.

Key Details of SEBI Verified UPI Handles Initiative

This initiative introduces robust measures to protect investors and streamline market transactions. Below is a table summarizing the key details:

Introducing SEBI Check: A Tool for Investor Safety

Alongside SEBI verified UPI handles, SEBI is launching ‘SEBI Check,’ a tool to verify the authenticity of UPI IDs. As detailed in a Financial Express article, investors can scan a QR code or manually enter a UPI ID to confirm bank details, such as account number and IFSC code, ensuring payments go to registered intermediaries. This tool, set to go live on October 1, 2025, addresses rising concerns over cyber fraud, including app cloning and fake brokers. SEBI’s Ananth Narayan G emphasized that investors must verify UPI IDs via SEBI Check to avoid scams. For more on cybersecurity, visit our Technology section.

Why SEBI Introduced Verified UPI Handles

The rise in cyber frauds, where unregistered entities mislead investors through fake apps or WhatsApp scams, prompted SEBI to act. A report by ET Now notes that SEBI’s consultation paper in January 2025 highlighted the need for a secure payment framework. With UPI handling 18.67 billion transactions worth ₹25.14 trillion in May 2025, its role in India’s financial ecosystem is undeniable, according to Wikipedia’s UPI overview. However, this popularity has attracted fraudsters, necessitating SEBI’s intervention. The new UPI handles, issued only after bank verification via SEBI’s portal, ensure payments reach legitimate entities. For insights into financial trends, check our Business section.

Impact on Investors and Intermediaries

The SEBI verified UPI handles initiative benefits both investors and intermediaries. Investors gain confidence knowing their payments are secure, especially with the SEBI Check tool. The daily UPI transaction limit for capital market payments, raised to ₹5 lakh from ₹2 lakh, accommodates larger investments, as outlined in a MediaNama report. Intermediaries benefit from faster, fraud-free payments, though they must transition to new UPI IDs by December 8, 2025. Existing mutual fund SIPs remain unaffected, but new SIPs must use verified handles, per a Business Standard article. For more on investment strategies, visit our Finance section.

SEBI’s Broader Vision for Investor Protection

SEBI’s initiative aligns with its ongoing efforts to enhance investor safety. The regulator plans nationwide investor education programs over the next two years to raise awareness about cybersecurity, as stated in a Moneycontrol report. SEBI has also introduced measures like direct securities payouts to client accounts and ASBA-like fund blocking to prevent broker misuse, as detailed in another LiveMint article. These steps reflect SEBI’s commitment to a transparent and secure market. Stay informed with Kashmir News for the latest financial news. For related topics, explore our Health, Entertainment, or Sports sections.