Securities and Exchange Board of India (SEBI) is launching new measures to enhance investor protection and combat fraud, effective October 1, 2025. This initiative introduces “Validated UPI Handles” for SEBI-registered intermediaries, featuring a mandatory “@valid” handle and a visual “Thumbs-Up inside a green triangle” icon for easy identification of legitimate transactions. Intermediaries will also be required to generate QR codes with this logo. Additionally, SEBI is developing a “SEBI Check” tool, enabling investors to verify UPI IDs and bank details of registered intermediaries. These changes aim to provide a secure payment channel, ensure funds go only to verified entities, and offer clear warning signs against unauthorized fund collection, thereby fostering greater investor confidence in the securities market.
Securities and Exchange Board of India
PR No. 31/2025
SEBI to Introduce “Validated UPI Handles” and “SEBI Check” for Secured Payments by Investors to Enhance Investor Protection and Combat Fraud
SEBI today announced a significant initiative to enhance investor protection and combat unauthorized money collection in the securities market. Effective October 1, 2025, SEBI will introduce a structured and validated Unified Payment Interface (UPI) address mechanism, featuring the exclusive “@valid” handle, for all SEBI-registered investor-facing intermediaries.
1.New Initiative to Safeguard Investors
In recent years, unregistered entities have increasingly misled investors by collecting funds without authorization, often siphoning off these amounts for personal gain. This new framework is designed to proactively curb such fraudulent activities, enabling investors to easily identify legitimate SEBI-registered market intermediaries and make payments to them securely and efficiently.
2. SEBI’s Commitment to Secure Transactions
To address this growing issue of impersonation and enhance investor confidence, SEBI has mandated a new UPI address structure for all SEBI-registered intermediaries who collect funds from investors. This innovative mechanism is set to significantly improve the safety and accessibility of financial transactions within the securities market by providing a verified and secure payment channel.
3. Understanding the “Validated” UPI Address
The core of this new framework is a mandatory, structured UPI address for intermediaries, composed of a username and a unique handle:
i. Username: This will be a readable name chosen by the intermediary, followed by a mandatory suffix that clearly identifies their category. (example: .brk for a Stock Broker or .mf for a Mutual Fund)
ii. Exclusive “@valid” Handle: The handle will feature a unique and exclusive identifier, “@valid”, combined with the name of the self-certified syndicate bank. These “validated” handles will be exclusively allocated by the National Payments Corporation of India (NPCI) only for payment collection by SEBI-registered intermediaries.
iii. Visual Verification: To ensure easy identification of legitimate transactions, investors will see a clear visual cue, a “Thumbs-Up inside a green triangle” icon, when making a payment to a registered intermediary through this new handle.
iv. Mandatory QR Code: Intermediaries are also required to generate a QR code that prominently features this “thumbs-up” logo for investor convenience.
4. Introducing the “SEBI Check” Tool
To further empower investors, SEBI is developing a new functionality called “SEBI Check”. This upcoming tool will allow investors to:
i. Verify the authenticity of UPI IDs either by scanning a QR code or by entering the UPI ID manually.
ii. Confirm the bank details such as bank account number and Indian Financial System Code (IFSC) of a registered intermediary
5. Key Benefits: Fostering Trust and Security
This new mechanism is expected to deliver several crucial benefits:
i. Enhanced Investor Protection: It adds a vital layer of security, allowing investors to verify an entity’s authenticity before any financial transaction.
ii. Assured Payments: Investors can be confident that their payments are directed only to verified and SEBI-registered market intermediaries.
iii. Clear Warning Signs: The absence of the “thumbs-up icon inside a green triangle” will serve as an immediate caution, alerting investors to the risk of making payments to unauthorized entities.
iv. Increased Confidence: By streamlining payments to registered intermediaries, this initiative will instill greater confidence among investors, encouraging them to engage only with authorized entities for their investment needs.
6. Rollout
Both ‘Validated UPI Addresses’ and ‘SEBI Check’ shall be available to users w.e.f. October 1, 2025.
7. Additional Resources
i. For further details, please refer to the Video
ii. For details on this initiative and the complete process flow, please refer to the Circular available on the SEBI website.
Mumbai
June 11, 2025
