Additionally, SEBI launched SEBI Check, a digital verification tool that enables investors to independently verify registered intermediaries’ UPI IDs and bank account information.
To improve payment security and shield investors from dishonest companies, the Securities and Exchange Board of India (SEBI) has launched two new programs: SEBI Check and Validated UPI Handles.
The National Payments Corporation of India will henceforth only use the “@valid” handle on UPI IDs of brokers, mutual funds, and other intermediaries that deal with investors under the new system, which goes into effect on October 1. Additionally, each UPI ID will include category-specific suffixes, such “.mf” for mutual funds and “.brk” for brokers, making it simple for investors to identify trustworthy companies. A mutual fund’s UPI ID may be xyz.mf@validicici, but a broker’s ID would be abc.brk@validhdfc.
According to SEBI, all mutual funds and more than 90% of brokers, who represent the bulk of investors, have already switched to the new handle. When payments are made using these IDs, a recognizable “thumbs-up within a green triangle” symbol will appear to verify authenticity; if it is absent, investors will be warned that there may have been unapproved transactions. In order to facilitate easy and validated payments, intermediaries will also provide specifically created QR codes with the same thumbs-up signal in the center.
SEBI has also launched SEBI Check, a digital verification tool that enables investors to independently verify the bank account information and UPI IDs of registered intermediaries, in addition to the new UPI system. Investors may use the Saarthi mobile app or the SEBI Check platform to confirm authenticity by providing the account number, IFSC code, or @valid UPI ID.
According to SEBI, these measures should increase investor protection, lower the chance of fraud, and boost confidence in the securities market’s digital transaction architecture. The rollouts, according to the regulator, demonstrate its commitment to safeguarding investors, maintaining market integrity, and enhancing digital confidence in India’s financial system.