Description

BSE issues Standard Operating Procedure (V1.1) for SEBI registered intermediaries to request and obtain validated UPI IDs for payment collection from investors, implementing SEBI and NPCI circulars.

Summary

BSE has issued a Standard Operating Procedure (Version V1.1, dated August 6, 2025) for SEBI registered intermediaries to request and obtain validated, standardised, and exclusive UPI IDs for collecting payments from investors. This document implements SEBI Circular SEBI/HO/DEPA-II/DEPA-II_SRG/P/CIR/2025/86 dated June 11, 2025, and NPCI Circular NPCI/UPI/OC/217/2025-26 dated July 3, 2025. The procedure applies to brokers, depository participants (DPs), investment advisors (IAs), and research analysts (RAs).

Key Points

  • BSE provides an online portal system for intermediaries to request “At Valid” UPI IDs
  • Two portals available: UAT Portal at https://membershipraia.bseindia.com/login.aspx for registered entities
  • Entity information is auto-populated and non-editable based on SEBI registration certificate details
  • System automatically generates unique usernames based on entity name or registered trade name
  • Legal account holder can be the entity itself, the Exchange, or the Clearing Corporation
  • Username generation includes options for standard, longer, or fixed-length formats
  • Optional parameters can be added to customize UPI username structure
  • Users can add new UPI ID requests and view status of existing requests through the portal

Regulatory Changes

This SOP implements mandatory regulatory requirements from:

  • SEBI Circular SEBI/HO/DEPA-II/DEPA-II_SRG/P/CIR/2025/86 (June 11, 2025) mandating standardised UPI IDs for SEBI registered intermediaries
  • NPCI Circular NPCI/UPI/OC/217/2025-26 (July 3, 2025) providing technical framework for validated UPI IDs
  • Introduces standardisation of payment collection mechanisms across all SEBI registered intermediaries
  • Requires exclusive and validated UPI IDs to be used for investor payment collection

Compliance Requirements

For SEBI Registered Intermediaries (Brokers, DPs, IAs, RAs):

  • Access BSE’s UPI Request Handle portal using provided credentials
  • Submit new UPI ID requests through the online system
  • Provide accurate bank account information and IFSC codes
  • Use entity name as registered with SEBI or registered trademark as trade name
  • Provide trademark registration number if using trade name for UPI username
  • Select appropriate legal account holder (entity/exchange/clearing corporation)
  • Generate and validate unique usernames following system guidelines
  • Await bank approval for submitted UPI ID requests
  • Monitor request status through the portal’s “View all Requests” feature

For Partner Banks:

  • Review and approve UPI ID requests submitted by intermediaries
  • Validate beneficiary information and account details
  • Process requests according to NPCI guidelines

Important Dates

  • June 11, 2025: SEBI Circular issued
  • July 3, 2025: NPCI Circular issued
  • August 6, 2025: BSE SOP Version V1.1 released
  • October 20, 2025: Circular published on BSE website
  • No specific implementation deadline mentioned in the document

Impact Assessment

Operational Impact:

  • All SEBI registered intermediaries must transition to standardised UPI ID systems
  • Requires onboarding to BSE’s UPI Request Handle portal
  • Intermediaries need to update payment collection infrastructure
  • May require changes to existing payment processing workflows

Market Impact:

  • Enhances transparency and standardisation in investor payment collection
  • Improves traceability of fund flows from investors to intermediaries
  • Reduces risk of fraudulent payment collection through non-validated UPI IDs
  • Strengthens investor protection by ensuring payments go to validated intermediary accounts

Technical Impact:

  • Intermediaries must integrate with BSE’s portal system
  • Requires coordination between intermediaries and their banking partners
  • Username generation system provides flexibility while maintaining standardisation
  • System allows for entity customization through trade names and optional parameters

Impact Justification

Mandatory compliance requirement for all SEBI registered intermediaries to adopt standardised UPI IDs for investor payment collection, affecting operational processes of brokers, DPs, IAs, and RAs