Description

BSE mandates SEBI registered intermediaries to adopt standardised, validated and exclusive UPI IDs for collecting payments from investors to enhance transparency and security in payment processes.

Summary

BSE has issued a circular regarding the adoption of standardised, validated and exclusive UPI IDs for payment collection by SEBI registered intermediaries from investors. This regulatory requirement aims to enhance transparency, security, and standardisation in payment collection processes across the securities market ecosystem. All SEBI registered intermediaries are required to implement validated and exclusive UPI IDs for collecting payments from investors.

Key Points

  • SEBI registered intermediaries must adopt standardised and validated UPI IDs for payment collection
  • UPI IDs must be exclusive and dedicated for investor payment collection purposes
  • Implementation is mandatory to ensure enhanced payment security and transparency
  • Applies to all SEBI registered intermediaries operating in the securities market
  • Standardisation requirement aims to streamline payment processes across the industry
  • Validation of UPI IDs ensures authenticity and reduces fraud risks

Regulatory Changes

This circular introduces mandatory requirements for SEBI registered intermediaries to:

  • Use only standardised and validated UPI IDs for collecting payments from investors
  • Ensure UPI IDs are exclusive and dedicated for investor payment collection
  • Comply with SEBI’s payment collection framework for enhanced investor protection
  • Implement proper validation mechanisms for UPI ID usage

Compliance Requirements

SEBI registered intermediaries must:

  • Obtain and implement standardised UPI IDs that meet SEBI’s validation criteria
  • Ensure UPI IDs used for investor payment collection are exclusive and not used for other purposes
  • Update their payment collection infrastructure to comply with the new requirements
  • Discontinue use of non-compliant or non-validated UPI IDs for investor payments
  • Maintain proper records of validated UPI IDs used for payment collection
  • Ensure all investor communications reflect the validated and exclusive UPI IDs

Important Dates

Circular Date: October 20, 2025 Implementation deadline and effective date would be specified in the detailed circular document.

Impact Assessment

Operational Impact: SEBI registered intermediaries will need to update their payment collection systems, infrastructure, and processes to implement validated and exclusive UPI IDs. This may require technical integration, system updates, and changes to investor communication materials.

Compliance Impact: High - All SEBI registered intermediaries must ensure full compliance with the standardised UPI ID requirements. Non-compliance may result in regulatory action and operational restrictions.

Investor Impact: Positive - Enhanced security and standardisation in payment processes will provide better protection to investors and reduce risks associated with fraudulent payment collection.

Market Impact: Industry-wide standardisation of payment collection mechanisms will improve overall market infrastructure and enhance transparency in fund collection processes across the securities market ecosystem.

Impact Justification

High importance and impact as this mandates significant operational changes for all SEBI registered intermediaries in their payment collection processes, affecting payment infrastructure and investor fund collection mechanisms