Sebi rolls out verified UPI and a fraud detection tool for investors

Measures launching on Oct 1 will help people verify payments they make in market transactions

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The market regulator will on October 1 launch validated UPI handles and a new verification tool called SEBI Check to protect investors and prevent financial fraud.

 

The Securities and Exchange Board of India (Sebi) has noted a surge in fraudsters impersonating registered entities or promoting dubious schemes online to collect money. “The root cause is lack of verification,” said Sebi in a press release. The two new measures will help people verify who they are making payments to when they invest in securities or mutual funds.

 

What is a validated UPI handle?

 

From October 1, Sebi-registered intermediaries collecting funds via Unified Payments Interface must use a structured and verified UPI address:

 

Username: A readable name followed by a suffix indicating the category (‘brk’ for brokers, ‘mf’ for mutual funds).

 

Handle: The suffix ‘@valid’ added with the name of the bank, allocated only after Sebi verification through National Payments Corporation of India, which manages UPI.

 

Visual cue: Payments to such handles will show a “thumbs-up icon inside a green triangle”, helping users confirm legitimacy.

 

QR code: All intermediaries will also provide QR codes featuring the visual cue for quick scans.

 

What is SEBI Check

 

The regulator is also rolling out ‘SEBI Check’, a digital tool to verify payment details. Through this tool, investors can:

 

Confirm UPI ID validity by scanning QR codes or manually entering the ID.

 

Verify bank account numbers and IFSC codes against Sebi’s database.

 

Access the tool in multiple Indian languages for broader reach.

 

“The idea is to create a single source of truth that even tech-averse or regional language investors can access,” said Sebi said in a video explaining the tools.

 

Impact on investors and intermediaries

 

Investors will no longer need to rely on trust alone or social media claims. Absence of the validated handle or green icon will act as a red flag.

 

Existing UPI arrangements will continue for now, but all new investor transactions must route through the validated handles.

 

The tool will be available on Sebi’s website and mirrors the regular’s SaaRthi initiative for investor tools more user-friendly.