SEBI's latest tool will protect investors from financial fraud
What's the story
The Securities and Exchange Board of India (SEBI) has announced a new Unified Payments Interface (UPI) verification mechanism, 'SEBI Check,' to enhance investor security in capital market transactions.
The move comes amid rising concerns over cyber fraud.
The tool will help the investors confirm the authenticity of UPI addresses in real time, ensuring that payments are sent only to trusted entities.
Usage
'SEBI Check' tool to boost transparency
The 'SEBI Check' tool will be operational from October 1, 2025. It will allow investors to verify the UPI handles of SEBI-registered intermediaries before making payments.
This is part of SEBI's broader commitment to improve transparency and security for retail investors.
The framework will apply to all SEBI-registered entities involved in fund collection, with a circular detailing its operational process expected soon.
Implementation
How the mechanism will be implemented
The implementation of this mechanism will see the National Payments Corporation of India (NPCI) collaborate with banks to allocate UPI handles. Banks will then make system modifications to integrate the tool. The changes will be made by intermediaries and not investors.
New feature
SEBI also launched 'Valid' UPI addresses
Along with 'SEBI Check,' SEBI has also launched 'Valid,' a unique UPI address for market intermediaries to collect the funds from clients.
The UPI IDs of regulated entities shall include the handle name '@valid' along with the bank name, thus ensuring easy identification by investors.
A green-colored thumbs-up icon in a triangle will also be marked to show transaction legitimacy.