In an endeavour to improve the safety and accessibility of financial transactions within the securities market, markets regulator SEBI has mandated a new UPI payment mechanism for all registered intermediaries who collect funds from investors, SEBI chief Tuhin Kanta Pandey told reporters in Mumbai on Wednesday.
To address the issue of impersonation and enhance investor confidence, the regulator has mandated a new UPI address structure for all Sebi-registered intermediaries who collect funds from investors.
The Unified Payments Interface (UPI) payment mechanism will go live from October 1, 2025.
The SEBI decision comes after unregistered entities have been increasingly misleading investors by fraudulent activities in recent years.
“This innovative mechanism is set to significantly improve the safety and accessibility of financial transactions within the securities market by providing a verified and secure payment channel,” Pandey said.
To empower investors, the market regulator is developing a new functionality called “Sebi Check”.
This upcoming tool will enable investors to verify the authenticity of UPI IDs either by scanning a QR code or entering the UPI ID manually and confirming the bank details, such as the account number and India Financial System Code (IFSC) of a registered intermediary.
In January, the Securities and Exchange Board of India (Sebi) floated a consultation paper in this regard.
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