Description

SEBI mandates registered intermediaries to obtain structured UPI addresses using @valid handles for secure investor payment collection.

Summary

SEBI has introduced a mandatory structured UPI address mechanism for all registered intermediaries to collect payments from investors. The system uses standardized UPI IDs with specific username formats followed by @valid handles linked to self-certified syndicate banks. While usage remains optional for investors, intermediaries must obtain and make these addresses available to their clients.

Key Points

  • Mandatory for all SEBI registered intermediaries to obtain structured UPI addresses
  • Username format: intermediary name + segment abbreviation (e.g., abc.brk for broker, xyz.mf for mutual fund)
  • Handle format: @valid combined with bank name (e.g., @validhdfc)
  • Complete UPI ID example: abc.brk@validhdfc
  • Green triangle with thumbs-up icon will identify validated intermediary payments
  • Username generation only through SEBI-provided utility
  • Optional for investors but intermediaries encouraged to promote adoption

Regulatory Changes

  • Introduction of structured UPI address framework for market intermediaries
  • Mandatory compliance for Stock Exchanges, Clearing Corporations, Depositories, RTAs, and SCSBs
  • New validation mechanism through SEBI for intermediary bank accounts
  • Standardized abbreviation system for different intermediary segments

Compliance Requirements

  • All registered intermediaries must obtain structured UPI addresses
  • Must make UPI addresses available to investors
  • Active promotion of the mechanism to investors required
  • Use only SEBI-approved username generation utility
  • Compliance with specific username and handle format requirements
  • Coordination with self-certified syndicate banks for handle allocation

Important Dates

  • Circular dated: June 11, 2025
  • Implementation timeline and deadlines to be specified in subsequent communications

Impact Assessment

  • Enhances investor safety by ensuring payments go to verified intermediaries
  • Improves accessibility and standardization of payment systems in securities market
  • Requires operational changes across all registered intermediaries
  • May increase investor confidence through visual validation indicators
  • Potential reduction in payment fraud and misdirected funds
  • Requires coordination between intermediaries, banks, and NPCI for implementation

Impact Justification

Mandatory implementation affects all SEBI registered intermediaries and introduces new payment infrastructure for investor transactions