Description

SEBI mandates intermediaries to obtain structured UPI addresses for secure investor fund collection with validated @valid handles.

Summary

SEBI has introduced a mandatory structured UPI address mechanism for all registered intermediaries to collect funds from investors. The framework requires intermediaries to obtain validated UPI IDs using standardized formats with @valid handles provided by NPCI in partnership with Self-Certified Syndicate Banks (SCSBs). While investor usage remains optional, intermediaries must make these addresses available and actively promote their adoption.

Key Points

  • Mandatory for all SEBI-registered investor-facing intermediaries to obtain structured UPI addresses
  • UPI address format: [username].[segment abbreviation]@valid[bankname] (e.g., abc.brk@validhdfc)
  • Username generation through SEBI utility only, with segment-specific abbreviations (brk for brokers, mf for mutual funds)
  • Unique @valid handles allocated by NPCI combined with SCSB names
  • Green triangle with thumbs-up icon for verified intermediary payments
  • Investor usage optional but intermediaries must actively promote adoption
  • Developed through public consultation with NPCI and SCSBs

Regulatory Changes

  • Introduction of structured UPI address framework for securities market intermediaries
  • Mandatory compliance for Market Infrastructure Institutions, Investor Facing Intermediaries, RTAs, and SCSBs
  • Standardized username generation through dedicated SEBI utility
  • Validated handle system through NPCI partnership
  • Visual verification system with green triangle icon for authenticated payments

Compliance Requirements

  • All registered intermediaries must obtain structured UPI addresses
  • Use only SEBI-provided utility for username generation
  • Implement segment-specific abbreviations (detailed in Annexure B)
  • Make UPI addresses available to all investors
  • Actively promote and facilitate investor adoption
  • Follow operational procedures outlined in subsequent circular sections
  • Comply with flowchart process in Annexure A for allocation and implementation

Important Dates

  • Circular issued: June 11, 2025
  • Implementation timeline: To be detailed in subsequent sections (referenced but not provided in excerpt)

Impact Assessment

High impact on market operations as this affects all payment collection mechanisms for SEBI-registered intermediaries. Enhanced investor safety through validated payment channels, reduced fraud risk, and improved accessibility. Operational changes required across all intermediary segments including technology integration, staff training, and investor communication. Positive market confidence impact through verified payment assurance system.

Impact Justification

Mandatory compliance requirement for all SEBI registered intermediaries affecting payment collection mechanisms