Description

SEBI mandates intermediaries to obtain structured UPI addresses for investor fund collection to enhance accessibility and safety in securities market payments.

Summary

SEBI introduces a structured UPI address mechanism for registered intermediaries to collect funds from investors. While usage remains optional for investors, intermediaries must mandatorily obtain and make available structured UPI addresses to enhance payment safety and accessibility in securities markets.

Key Points

  • Mandatory for all SEBI registered intermediaries to obtain structured UPI addresses
  • Optional for investors to use this payment mechanism
  • UPI addresses follow format: username.abbreviation@validbankname
  • Username must include intermediary segment abbreviation (e.g., .brk for brokers, .mf for mutual funds)
  • Unique handle “@valid” combined with SCSB bank names for easy identification
  • Green triangle with thumbs-up icon will identify validated intermediary payments
  • Developed in consultation with NPCI and Self-Certified Syndicate Banks

Regulatory Changes

  • Introduction of structured UPI payment framework for securities market
  • Mandatory adoption requirement for all investor-facing intermediaries
  • Standardized username generation utility implementation
  • NPCI allocation of unique UPI handles for intermediaries

Compliance Requirements

  • All SEBI registered intermediaries must obtain structured UPI addresses
  • Intermediaries must make UPI addresses available to their investors
  • Active promotion and facilitation of mechanism adoption encouraged
  • Username generation must use SEBI-provided utility
  • Compliance with segment-specific abbreviation requirements

Important Dates

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

Impact Assessment

  • Enhances investor confidence through validated payment channels
  • Reduces payment fraud risks in securities transactions
  • Standardizes digital payment processes across intermediaries
  • May require system upgrades and process changes for intermediaries
  • Improves transparency in fund collection mechanisms

Impact Justification

Mandatory implementation for all SEBI registered intermediaries affecting payment collection mechanisms across securities market