Summary: SEBI has introduced a standardised UPI payment framework for specified investor-facing SEBI-registered intermediaries requiring them to obtain dedicated UPI IDs with the exclusive “@valid” handle and category-specific suffixes to collect investor payments. The framework aims to reduce payment fraud by enabling investors to verify authorised payment channels through the intermediary’s name, category suffix, “@valid” handle and the white thumbs-up symbol inside a green triangle. The validated UPI IDs became available from 1st October 2025 following SEBI’s circular dated 11th June 2025, with a transition period for replacing old UPI IDs, subject to a limited exception for existing mutual fund SIPs. Covered intermediaries must generate the prescribed QR code, update payment details across official platforms, educate investors and use approved business bank accounts for investor collections. Investors may continue using NEFT, RTGS, IMPS, cheque or other permitted payment methods, but where UPI is used, payment should be made only through the validated UPI ID. SEBI Check allows verification of validated UPI IDs, bank account numbers and IFSC codes before making payments.
SEBI Mandates “@valid” UPI Handles for Investor-Facing Intermediaries from October 1, 2025
The Securities and Exchange Board of India has introduced a standardised UPI payment framework for selected SEBI-registered investor-facing intermediaries. Under this system, covered entities must obtain a dedicated UPI ID containing the exclusive “@valid” handle for collecting payments from investors. The validated UPI address also includes a category-specific suffix, helping investors identify whether the recipient is a stockbroker, research analyst, investment adviser, mutual fund or another regulated intermediary.
The main objective of this framework is to reduce payment fraud and protect investors from fake QR codes, impersonation attempts and unauthorised payment requests. Fraudsters often misuse the names and logos of genuine intermediaries and ask investors to transfer money into personal accounts. By checking the intermediary’s name, category suffix, “@valid” handle and verification symbol before entering the UPI PIN, investors can confirm that the payment is being made through an authorised channel linked to a SEBI-regulated entity.
Background of the Validated UPI Requirement
Digital payments have become an important part of India’s securities market. Investors regularly use UPI to pay brokerage charges, advisory fees, research subscription fees, portfolio management charges and other permissible amounts. However, fraudsters have also started impersonating stockbrokers, research analysts, investment advisers and other registered entities.
They create fake websites, Telegram groups, social media accounts and WhatsApp profiles and then ask investors to transfer money to personal UPI IDs. To reduce such risks, SEBI introduced a structured and exclusive UPI mechanism through its circular dated June 11, 2025. The new UPI IDs became available for investor transactions from October 1, 2025.
Objective of SEBI’s “@valid” UPI Context
The main objective of the context is to help investors distinguish genuine payment accounts from fake or unauthorised accounts. Previously, an ordinary UPI ID did not provide any regulatory identification of the recipient. Under the new system, the UPI ID includes the name of the intermediary, its regulatory category and an exclusive bank-linked “@valid” handle.
This makes it easier for investors to confirm that payment is being made to a verified entity. The context also creates greater accountability for intermediaries because payments relating to regulated activities must be collected through approved and verified banking channels.
Is the Validated UPI Handle Mandatory?
The validated UPI handle is mandatory for the investor-facing intermediary categories covered by the SEBI circular. These entities must obtain the prescribed UPI ID and make it available to their clients as a payment option. The intermediary must also generate the prescribed QR code, display the validated payment details and educate investors about the use of the new system.
Therefore, obtaining the “@valid” UPI handle is not merely an optional facility for a covered intermediary. For investors, the use of UPI itself is not compulsory. Investors may continue to make payments through NEFT, RTGS, IMPS, cheque or other permitted banking modes. However, where an investor chooses UPI, payment should be made only through the validated UPI ID of the intermediary.
Effective Date of the Requirement
The standardised UPI handles became available for investors from October 1, 2025. SEBI had provided a transition period during which intermediaries could operate their old and new UPI IDs simultaneously. After the transition period, intermediaries were required to discontinue generic or unvalidated UPI IDs for receiving investor payments.
Therefore, covered entities should now ensure that old UPI IDs have been removed from their websites, invoices, mobile applications and client communications. A limited exception was provided for existing mutual fund SIP arrangements to avoid disruption to ongoing mandates. However, new, renewed or extended SIP instructions are required to follow the validated payment context.
SEBI Intermediaries Covered Under the Framework
The context applies to investor-facing intermediary categories specified by SEBI. These include stockbrokers, bankers to an issue, depository participants, research analysts, investment advisers, Infrastructure Investment Trusts, mutual funds, portfolio managers, Small and Medium Real Estate Investment Trusts and Real Estate Investment Trusts.
Each intermediary category has been allotted a specific suffix. For example, a stockbroker uses the suffix “.brk”, a research analyst uses “.ra”, an investment adviser uses “.ia”, a mutual fund uses “.mf” and a portfolio manager uses “.pms”.
The category suffix allows an investor to identify the capacity in which the entity is receiving payment. It is automatically added through the SEBI Intermediary Portal based on the intermediary’s registration details.
Structure of a Validated UPI ID
A validated UPI ID contains a business-related username, a category-specific suffix and the exclusive “@valid” bank handle. The username may be based on the business name mentioned in the SEBI registration certificate or a registered trademark of the intermediary.
For example, a stockbroker may have an ID such as abc.brk@validbank, while a research analyst may use marketresearch.ra@validbank. Similarly, an investment adviser may receive an ID containing the “.ia” suffix. The examples are only illustrative. The final UPI ID depends on username availability, portal validation, the intermediary’s registration category and approval by the participating bank.
Meaning of the “@valid” Handle
The “@valid” portion indicates that the UPI address has been created under the exclusive payment framework applicable to SEBI-registered intermediaries. It confirms that the payment account has been verified through the prescribed process. The handle is allocated by an eligible Self-Certified Syndicate Bank after verification of the intermediary and its bank account.
It is intended to be used for collecting payments connected with the regulated activities of the intermediary. The presence of “@valid” does not guarantee investment returns or the success of any investment strategy. It only helps the investor verify that the payment channel belongs to a registered intermediary.
Importance of the Category-Specific Suffix
The category-specific suffix provides additional regulatory identification. It informs the investor whether the recipient is operating as a stockbroker, investment adviser, research analyst, mutual fund or another covered intermediary.
For instance, an investor paying for research services should ordinarily see the “.ra” suffix in the UPI ID of the research analyst. Similarly, a payment for investment advisory services should be made to an ID containing the “.ia” suffix. The suffix reduces confusion where the same person or entity holds more than one SEBI registration. Separate UPI IDs may be required for different regulated activities.
Green Triangle and Thumbs-Up Symbol
When an investor initiates payment to a validated UPI ID, the payment application is expected to display a white thumbs-up symbol inside a green triangle. This symbol acts as an additional visual verification feature. The investor should check for the symbol on the actual UPI payment screen before entering the UPI PIN.
Merely seeing the symbol on a website, screenshot, brochure or social media post is not sufficient. If the symbol does not appear, the investor should stop the payment and independently verify the UPI ID through the official SEBI Check facility or through the intermediary’s verified communication channels.
Mandatory QR Code Requirement
Covered intermediaries are required to generate the prescribed QR code through the utility available on the SEBI Intermediary Portal. The QR code contains the approved UPI details and the prescribed verification symbol. The intermediary should display the QR code on its official website, client portal, payment page, mobile application, invoices and other authorised payment communications.
Investors should still verify the recipient name shown in the UPI application after scanning the QR code. Fraudsters may copy genuine-looking logos or create misleading QR images, so the actual payment screen must always be checked.
Process for Obtaining a Validated UPI Handle
The intermediary must first ensure that its mobile number, email address and registration details are correctly updated on the SEBI Intermediary Portal. Incorrect information may delay authentication and bank approval. The intermediary must then identify all bank accounts into which investor funds are received. A validated UPI ID should be obtained for each eligible investor collection account.
The username and UPI generation utility available on the portal must be used to propose the business-related username. The appropriate regulatory suffix is added automatically based on the intermediary’s registration category. The request is then forwarded to the participating bank. The bank conducts the prescribed verification and due diligence before approving and allocating the UPI handle. After approval, the validated UPI ID becomes visible on the portal. The intermediary may then generate the approved QR code and communicate the new payment details to investors.
Use of an Existing Bank Account
SEBI does not require an intermediary to open a new bank account merely for obtaining the validated UPI ID. An existing eligible business bank account may be linked with the new handle, subject to verification and approval by the bank. However, the account should be maintained in the proper registered name and should be used for legitimate investor collections.
Payments should not be received in the personal account of a director, employee, relationship manager or authorised representative. Using personal accounts for investor collections may create serious regulatory, accounting and investor-protection concerns, even where the amount is later transferred to the entity’s business account.
Multiple Bank Accounts and UPI IDs
An intermediary may maintain multiple business bank accounts for investor collections. In such cases, each account may have a separate validated UPI ID. The same business-related username may be used with different approved bank handles, subject to availability and bank-level validation. This allows an intermediary to maintain more than one recognised payment channel.
The intermediary should ensure that all accounts receiving investor funds are covered. Obtaining the validated UPI ID for only one account while continuing to receive money in other unvalidated accounts may result in incomplete compliance.
Multiple SEBI Registrations
An entity holding more than one SEBI registration must apply separately under each relevant intermediary category. This is because each regulated activity carries its own identification suffix.
For example, an entity registered as both a research analyst and an investment adviser may require separate UPI IDs containing “.ra” and “.ia” respectively. This separation allows investors to understand whether they are paying for research services, advisory services or another regulated activity. It also helps the intermediary maintain proper accounting and regulatory records.
UPI Transaction Limit
The framework provides for UPI payments of up to ₹5 lakh per day for eligible capital-market transactions, subject to the limits prescribed by the investor’s bank, UPI application and the National Payments Corporation of India.
The availability of the validated UPI handle does not automatically mean that every investor can transfer ₹5 lakh in one transaction. Some banks or UPI applications may maintain lower transaction limits. Where the payment exceeds the available UPI limit, the investor may use NEFT, RTGS or another permitted method after verifying the intermediary’s bank account details.
Treatment of Old UPI IDs
During the transition phase, covered intermediaries were allowed to operate their old and new UPI IDs in parallel. However, the old generic UPI IDs were required to be discontinued within the timeline provided by SEBI.
Intermediaries should carefully review their websites, invoices, fee letters, email templates, WhatsApp messages, mobile applications, archived social media posts and printed materials to ensure that outdated payment details are no longer being circulated. Continuing to display an old UPI ID may confuse investors and increase the risk of incorrect or fraudulent payments.
Special Rule for Mutual Fund SIPs
SEBI allowed ongoing mutual fund SIP arrangements to continue through the existing payment mechanism so that existing mandates were not disrupted. However, a new SIP, renewal of an existing SIP or extension of an existing SIP must follow the validated UPI payment system wherever UPI is used. The relaxation is therefore limited to continuing existing arrangements and should not be interpreted as a general exemption for all mutual fund payments.
SEBI Check Facility
SEBI Check is an investor-verification facility that allows users to confirm the authenticity of a validated UPI ID. Investors may verify the ID manually or by scanning the relevant QR code. The facility also allows verification of the intermediary’s bank account number and IFSC code. Therefore, investors can use it before making payments through NEFT, RTGS or IMPS as well. SEBI Check provides an independent verification layer and is especially useful where payment details are received through WhatsApp, email, social media or another digital communication channel.
Responsibilities of SEBI Intermediaries
A covered intermediary must ensure that the validated UPI framework is properly implemented across all investor-facing operations. It should obtain the correct handle, generate the approved QR code and display the information prominently. The intermediary should update its website, invoices, engagement letters, fee schedules, mobile application and payment instructions. Old UPI IDs and generic QR codes should be removed after the prescribed transition period.
Employees and authorised representatives should be trained not to share personal or unapproved payment accounts. Investor payments should be collected only through properly authorised banking channels. The intermediary should also create awareness through SMS, email, website notices, social media posts and frequently asked questions. Records of bank approval, QR generation, investor communication and internal implementation should be preserved.
Role of Research Analysts and Investment Advisers
Research analysts and investment advisers are particularly exposed to online impersonation. Fraudsters may use similar names, logos or social media accounts and promise assured returns or guaranteed trading profits. They may ask investors to pay subscription or advisory fees into personal UPI accounts.
The validated handle helps genuine professionals distinguish their authorised payment channels from those of impersonators. A research analyst should ordinarily receive payments through an ID containing the “.ra” suffix, while an investment adviser should use an ID containing “.ia”. Investors should question any request that does not contain the appropriate suffix or “@valid” handle.
Checks Investors Should Perform Before Payment
Before approving a UPI payment, an investor should confirm that the recipient name matches the registered intermediary. The UPI ID should contain the appropriate category suffix and the exclusive “@valid” bank handle. The investor should also look for the white thumbs-up symbol inside the green triangle on the payment screen.
The amount and purpose of the payment should match the official invoice, agreement or communication received from the intermediary. For greater security, the investor should verify the UPI ID or bank account details through SEBI Check. Money should never be transferred to the personal account of an employee, dealer, relationship manager or social media administrator.
Common Compliance Mistakes
One common mistake is collecting investor payments through the personal UPI ID of a director or employee. Such collection may create serious compliance concerns even if the money is later transferred to the business. Another mistake is obtaining a validated UPI ID for only one collection account while continuing to receive investor funds in other accounts. Every relevant investor collection account should be reviewed.
Intermediaries may also forget to replace old QR codes appearing in archived posts, invoices, brochures and automated messages. A complete communication and payment-system audit is therefore necessary. Using the wrong registration suffix is another concern. An intermediary should ensure that payments are collected under the correct regulatory category and for the activity covered by that registration.
Consequences of Non-Compliance
SEBI’s circular does not prescribe a separate fixed monetary penalty exclusively for failure to obtain a validated UPI handle. However, the requirement is mandatory for covered intermediaries. Failure to implement the mechanism may be treated as non-compliance with a binding regulatory direction.
It may result in observations during inspection, corrective directions, investor complaints, disciplinary action or proceedings under the applicable SEBI regulations. The actual consequences will depend on the category of intermediary, the seriousness of the violation, the amount involved and whether investor interests were affected.
Conclusion
The validated “@valid” UPI framework introduced by SEBI is a step toward strengthening investor protection and reducing payment fraud in the securities market. It provides investor-facing intermediaries with a recognisable and verified payment identity, helping investors distinguish genuine payment channels from fake UPI IDs, personal accounts and unauthorised QR codes. Covered intermediaries must not limit compliance to obtaining the new UPI handle; they should map investor collection accounts, generate the prescribed QR code, replace old payment details, update websites and client communications, and educate investors about the verification process.
Investors are not required to use UPI and may choose other payment methods. However, when UPI is used, payment should be made only through the validated UPI ID. Before authorising a transaction, investors should verify the intermediary’s name, category suffix, “@valid” handle, green verification symbol and SEBI Check result.
Frequently Asked Questions
Q1. Is the “@valid” UPI handle mandatory for all SEBI entities?
Ans. The requirement applies to the investor-facing intermediary categories specified by SEBI. An entity should examine its registration category and the relevant circular to determine whether it is covered.
Q2. Is UPI payment compulsory for investors?
Ans. No. Investors may use NEFT, RTGS, IMPS, cheque or another permitted payment method. However, where UPI is selected, the validated UPI ID should be used.
Q3. Does an investor need a new UPI ID?
Ans. No. The requirement applies to the intermediary receiving money. Investors may continue using their existing UPI applications and personal UPI IDs.
Q4. Can an existing business bank account be used?
Ans. Yes. A new bank account is not required solely for obtaining the validated UPI handle. An eligible existing business account may be used after verification and approval.
Q5. Can one intermediary have multiple validated UPI IDs?
Ans. Yes. Separate validated UPI IDs may be obtained for multiple investor collection accounts or different banks, subject to the prescribed process.
Q6. Is the QR code mandatory?
Ans. Yes. Covered intermediaries are required to generate the prescribed QR code through the authorised utility available on the SEBI Intermediary Portal.
Q7. What does the green triangle symbol mean?
Ans. The white thumbs-up symbol inside the green triangle indicates that the payment is being made through a validated channel associated with a SEBI-registered intermediary.
Q8. Does the validated handle guarantee investment returns?
Ans. No. It only verifies the payment channel. It does not guarantee returns, accuracy of research, suitability of advice or the performance of an investment.
Q9. Can an intermediary continue using an old UPI ID?
Ans. Old generic UPI IDs were permitted during the transition period. Covered intermediaries should now use the validated handle, subject to the limited exception for certain existing mutual fund SIPs.
Q10. How can bank account details be verified?
Ans. Investors can use the SEBI Check facility to verify the intermediary’s bank account number, IFSC code and validated UPI ID before transferring money.
