Sebi mandates verified '@valid' UPI handles to tackle payment fraud

To combat fraud and impersonation, the Securities and Exchange Board of India (Sebi) has mandated a new UPI handle — ‘@valid’ — for all registered intermediaries, including brokers, mutual funds, and investment advisors. The move ensures investors pay only to authorised entities, reducing the risk of fraudulent transactions.  

 

Effective October 1, intermediaries such as stockbrokers, research analysts, and investment advisors must adopt the new UPI ID format, which will appear as abc.bkr@validhdfc and xyz.mf@validhdfc

 

To enhance visibility, a green ‘thumbs up’ icon will accompany the verified UPI IDs, aiding non-English speakers in authentication.  

 

The new system will have no impact on existing SIPs but fresh investments must use the new handles.  

 

Around 8,000 to 9,000 intermediaries will migrate to the system.   

 

The daily UPI limit of ₹5 lakh remains for capital market transactions.  

 

Banks will issue ‘@valid’ IDs only after verifying intermediaries on Sebi’s portal. Old UPI handles can run parallel during a transition period before being phased out.  

 

Sebi Chairperson Tuhin Kanta Pandey emphasised that Sebi will carry out investor education and awareness campaigns over the next two years. Additionally, the regulator is developing ‘Sebi Check’, a tool to verify UPI IDs and bank details of intermediaries.  

 

The National Payments Corporation of India (NPCI) will issue operational guidelines, and misuse of these handles for non-payment purposes will be prohibited.