On Wednesday, the capital markets regulator issued a circular, making it mandatory for Sebi-registered intermediaries to obtain UPI IDs. Sebi said that it will issue UPI IDs for all Sebi-registered intermediaries who collect funds in a bid to avoid frauds and trading scams.
The new ecosystem will facilitate a secure and transparent payment system for investors to pay their money only to registered intermediaries.
5 things investors should know:
1) Is it compulsory for the investors to use the new handle only?
No. The investors can choose their preferred mode of payment, such as UPI, IMPS, NEFT, RTGS, or Cheques. If an investor opts to use UPI for the payment to registered intermediaries, then they have to do so only using the new UPI IDs allotted to registered intermediaries.
2) What should I check while making payment using the new UPI IDs/ QR Code?
4 things: One is the UPI ID should properly show the name of the intermediary, followed by the short abbreviation of their category for example “brk” for Brokers, “mf” for Mutual Funds to the left of the “@” character. Second should be the new and exclusive handle ‘@valid’ on the right side of the @ followed by the bank name. Third, on the confirmation screen, the app should show a white thumbs-up icon inside a green triangle. Fourth, the QR code generated using the utility will have a white thumbs-up icon inside a green triangle. It will also display the UPI ID just below the QR code.
3) Do investors also need to obtain new UPI handles to transact in the securities market?
No, the new UPI IDs are only for intermediaries to obtain and investors can continue to use their existing UPI IDs.
4) Whom to approach if my transaction/ payment fails with the new UPI ID?
The secure validated UPI ID of intermediaries will use the same banking channel as the earlier generic UPI handles. In case of any technical difficulty, investors are requested to approach their respective bank.
5) The standardised, validated and exclusive UPI IDs will be available for investors for making payments to intermediaries w.e.f. October 01, 2025.
Read more: Sebi to launch UPI IDs for registered entities to avoid trading frauds(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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