Description

SEBI launches @valid UPI handles for registered intermediaries and SEBI Check verification tool to enhance payment security and prevent fraud in securities transactions.

Summary

SEBI has launched two critical investor protection initiatives: (1) Validated UPI Handles with exclusive “@valid” identifier for SEBI-registered intermediaries, and (2) SEBI Check verification tool. Major brokers covering over 90% of investors and all Mutual Funds have already adopted the @valid UPI handle. These initiatives establish a secure and verified payment channel within the securities market to prevent fraud and misdirection of investor funds.

Key Points

  • Exclusive “@valid” UPI handle issued by NPCI for SEBI-registered investor-facing intermediaries
  • Category-specific suffixes (.brk for brokers, .mf for mutual funds) for easy identification
  • Visual verification through “thumbs-up inside green triangle” icon confirms transaction authenticity
  • Distinctive QR code with thumbs-up logo at center for error-free transactions
  • SEBI Check tool enables independent verification of bank account details and UPI IDs
  • Over 90% of investors’ brokers and all Mutual Funds have already adopted @valid handle
  • Facility complements existing payment modes (NEFT, RTGS, IMPS)
  • SEBI Check accessible via SEBI portal (https://siportal.sebi.gov.in/intermediary/sebi-check) and Saarthi app

Regulatory Changes

New Payment Infrastructure:

  • Introduction of exclusive “@valid” UPI handle format combining unique identifier with self-certified syndicate bank name
  • Format example: abc.brk@validhdfc (brokers), xyz.mf@validicici (mutual funds)
  • Visual authentication system through thumbs-up green triangle icon
  • Special QR codes with integrated thumbs-up logo for registered intermediaries

Verification Mechanism:

  • SEBI Check platform launched for real-time verification of intermediary bank accounts and UPI IDs
  • Verification possible using bank account number, IFSC code, or @valid UPI ID
  • Available through SEBI portal and Saarthi mobile app

Compliance Requirements

For Investors:

  • Strongly urged to actively use @valid handle when making payments to SEBI-registered intermediaries
  • Must verify authenticity of bank account details through SEBI Check before making payments
  • Should look for thumbs-up green triangle icon in UPI transactions
  • Absence of visual cue indicates potential fraudulent activity

For Intermediaries:

  • SEBI-registered investor-facing intermediaries to adopt @valid UPI handles
  • Major brokers (90%+ coverage) and all Mutual Funds already compliant

Important Dates

  • October 1, 2025: Initiatives now live and available for investors
  • Referenced earlier announcements: Press Release No. 31/2025 and Circular No. SEBI/HO/DEPA-II/DEPA-II_SRG/P/CIR/2025/86 dated June 11, 2025

Impact Assessment

Market Impact:

  • Affects all retail investors in Indian securities market
  • Covers 90%+ of investors through broker adoption and 100% of mutual fund investors
  • Creates industry-wide secure payment infrastructure

Operational Impact:

  • Additional payment option alongside existing modes (NEFT, RTGS, IMPS)
  • Investors maintain flexibility in payment methods
  • Real-time verification capability reduces fraud risk

Security Benefits:

  • Assured security through verified SEBI-registered intermediaries only
  • Instant fraud detection through visual verification system
  • Prevents misdirection of investor funds to unauthorized entities
  • Enhanced transparency and trust in securities market transactions

Investor Protection:

  • Significantly strengthens investor safeguards against fraudulent schemes
  • Easy identification of legitimate entities through standardized format
  • Independent verification capability empowers informed decision-making

Impact Justification

Major investor protection initiative affecting all retail investors and 90%+ of brokers and all mutual funds, introducing new secure payment infrastructure