“The number of fraud cases involving scammers impersonating brokers and asking for money to be transferred to random accounts has skyrocketed,” Kamath wrote on the microblogging site X (formerly Twitter) on June 16.
“To protect investors, SEBI has introduced a new UPI security feature. All legitimate fund transfers will now only go to verified UPI handles like: brokername@validbank (as shown in the image). We’ll (@zerodhaonline) implement this soon, and this should help reduce fraud incidents significantly.”
The number of fraud cases involving scammers impersonating brokers and asking for money to be transferred to random accounts has skyrocketed.
To protect investors, SEBI has introduced a new UPI security feature. All legitimate fund transfers will now only go to verified UPI… pic.twitter.com/yPuHo1iySY
— Nithin Kamath (@Nithin0dha) June 16, 2025
New UPI security structure goes live in October
The market regulator has mandated a validated UPI structure for all Sebi-registered intermediaries, including stockbrokers, mutual funds, and portfolio managers, effective October 1, 2025. As per a Sebi notification dated June 11, the move is aimed at addressing growing concerns over payment fraud on online investment platforms.
Each registered entity will be assigned a standardised UPI ID consisting of two parts, a username and a unique handle. The username will include the entity name along with a suffix that identifies the intermediary category (e.g., brk for broker, mf for mutual fund). The handle will be “@valid” appended by the bank name.
For instance, a broker named abc operating via HDFC Bank would have the UPI ID abc.brk@validhdfc, Sebi clarified.
Visual verification, QR codes and Sebi check
To make payment verification foolproof, all valid UPI handles will be marked with a distinctive “thumbs-up inside a green triangle” symbol. This logo will also appear on QR codes generated by intermediaries for investor use.
Complementing this will be Sebi Check, a tool currently under development that will allow investors to verify UPI IDs either by manually entering the ID or scanning a QR code. The platform will display associated bank account details and the IFSC code of the verified intermediary.
Sebi chairman Tuhin Kanta Pandey, speaking to reporters, said the new UPI verification structure is “set to significantly improve the safety and accessibility of financial transactions within the securities market by providing a verified and secure payment channel.”
The new handles are mandatory only for registered intermediaries, while investors may continue using their existing UPI IDs. The Rs 5 lakh per day transaction cap for capital market payments via UPI will remain unchanged.
The regulator expects approximately 8,000 intermediaries to transition to the new UPI framework by the implementation deadline.
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