Curbing frauds: Sebi brings more checks for investors via valid UPI handle

Amid rising instances of unregistered entities defrauding investors, market regulator Securities and Exchange Board of India (Sebi) has rolled out a new initiative, with the help of National Payments Council of India (NPCI), under which investors will be able to verify if the entity to which they are transferring money is registered with Sebi or not.

 

The new “@valid” handle for registered entities will go live from October 1, 2025. Only registered and authentic entities will be able to secure this handle through banks. All registered intermediaries have been mandated to obtain the new UPI IDs.

 

Which entities can get @valid handle?

 

Around 10 categories of investor-facing intermediaries like stockbrokers, depository participants, research analysts, investment advisors, mutual funds, portfolio managers, and real estate investment trusts (REITs) will be able to apply for the new handle. These entities will select a readable username followed by an abbreviation representing their segment. For instance, a stockbroker will have the suffix “brk” while a mutual fund will have “mf” in the username. @valid handle will be combined with the username of the banks. These handles will be allocated by NPCI. 

 

What changes for investors?

 

Investors will be able to authenticate if the entity receiving the payment is a valid entity under the ambit of Sebi. They will see a white “thumbs up” icon inside a green triangle, another symbol for verification. Investors can continue to choose any mode of payment like NEFT, RTGS, UPI, or cheques. However, for payments through UPI, they should choose only those with “@valid” IDs. These UPI IDs will be used only for collecting payments from investors. The existing mode of fund transfer for ongoing systematic investment plans (SIPs) will continue to avoid any disruption. New SIPs or renewal and extension of SIPs will have to be done using the new UPI IDs. The upper limit for capital market transactions through UPI is ₹5 lakh.

 

What if a fraudulent player registers?

 

Only authentic entities will be able to register. There are 52 self-certified syndicate banks, which will be allocated @valid handles by NPCI. These banks will initiate requests to NPCI for issuing new UPI handles. Intermediaries will be able to use their existing bank accounts and new accounts to obtain UPI IDs. The banks will have to do the due diligence before issuing the UPI IDs to any entity. They will confirm the request by entities after verification through the SI Portal of Sebi. Entities with multiple business accounts will be able to have a unique UPI ID for each account.

 

Will the old handles be removed?

 

The new UPI IDs will be allocated by banks within 90 days after the Sebi circular. The old IDs will be discontinued by intermediaries after 180 days — around mid-December. The three-month window after going live is for a smoother transition.

 

What is SEBI Check?

 

The market regulator is providing an additional layer of security — SEBI Check — to help investors verify the authenticity of an entity before a payment. This tool will also go live from October 1. Through this tool, investors will be able to verify the UPI IDs either by scanning the QR code or by entering the UPI ID manually. Bank details of the intermediary can also be confirmed through the tool. However, it is a separate tool and not integrated with UPI apps.