SEBI Launches “Validated UPI Handles” and

“SEBI Check” to Enhance Investor Payment Security

Priya Gandhi

Published on: Jul 29, 2025

Dikshita Khurana

Updated on: Jul 31, 2025

★★★★★(2 Ratings)

In a landmark move to boost investor safety and prevent financial fraud in the securities market, the Securities and Exchange Board of India (SEBI) has announced the rollout of “Validated UPI Handles” and a new verification tool called “SEBI Check”, both effective from October 1, 2025.

This initiative is a direct response to the growing number of fraudulent schemes run by unregistered entities that collect funds from unsuspecting investors under false pretenses.

New Framework for Secure Payments

Transaction Limits

UPI has transaction limits set by individual apps and banks, with an overall cap defined by NPCI
For capital market transactions, the current UPI limit ranges from ₹ 2 lakh to ₹ 5 lakh per day
SEBI has approved a maximum limit of ₹ 5 lakh per day
This limit is subject to periodic review and adjustment based on usage patterns and system evaluation

Responsibilities of Intermediaries, Self-Certified Syndicate Banks, MIIs and RTAs

Investor-Facing Intermediaries
- Update contact info (mobile number and email) on the SEBI SI Portal
- Use new UPI IDs issued by banks; old UPI handles can be used for a limited time before being discontinued
- Continue existing SIPs via current payment methods to avoid disruption, but use new UPI IDs for new or renewed SIPs
- Raise awareness about new UPI handles and the “SEBI Check” tool through:
  - SMS, email, social media, and website banners
  - Audio-visual messages and other communication channels
- Provide FAQs and guidance on their websites to help investors understand the new payment system.
Self-Certified Syndicate Banks
- Get API access as per the guidelines and verify all UPI ID requests before issuing them
- Conduct due diligence before assigning validated UPI handles
Market Infrastructure Institutions & Registrar and Transfer Agents
- Enable SI Portal access for intermediaries by updating their systems
- Promote awareness of validated UPI handles and the “SEBI Check” tool using SMS, emails, websites, and media
- Publish FAQs and educational material on their websites for investor guidance.

Key Guidelines for UPI Member Banks, PSPs, and TPAPs

UPI Handle Naming Convention
- UPI handles must follow the pattern: @valid or @validbankpsp
- Only Self Certified Syndicate Banks (SCSBs) acquiring SEBI-registered investor-facing intermediaries are eligible
- Handles are exclusive to SEBI-registered intermediaries, used only for payment collection (MCC code 6211)
Validation & Issuance
- Handles to be issued only after validation as per SEBI circular
- No other use of these UPI IDs is permitted
UPI Apps
- Prevent creation of misleading/gibberish VPAs
- When a user pays to a @validbankpsp UPI ID, the app must display a “thumbs-up” icon inside a green triangle to indicate verified SEBI intermediary
UPI AutoPay Updates
- Existing mandates remain unchanged until renewal.
- New mandates must follow structure:
  <Merchant identifier>.<Aggregator identifier>.<Intermediary username suffix>@<validbankpsp>

Key Benefits to Investors

Safer Payments: Investors can easily check payment details before sending money, making transactions more secure
Fraud Alerts: If the “thumbs-up” icon is missing, it’s a warning sign that the payment request might be fake
More Trust: Using only verified UPI IDs helps investors feel confident that their money is going to the right place
Stronger Rules: All registered intermediaries must follow this system, reducing the risk of fraud from unregistered players

Process Flow for allocation of UPI Handles

Conclusion

SEBI’s new initiative marks a significant advancement in India’s securities infrastructure. By leveraging UPI’s reach and combining it with strong verification tools, the regulator aims to create a safer, more transparent, and fraud-resistant investing environment.

This move not only reflects SEBI’s commitment to protecting investors but also represents a proactive step towards digitally secure financial transactions in the evolving Indian capital market.

Abbreviations

SEBI – Securities and Exchange Board of India
NPCI – National Payments Corporation of India
UPI Member Banks – Unified Payments Interface (UPI) Member Banks
PSPs – Payment Service Providers
TPAPs – Third Party Application Providers
VPAs – Virtual Payment Addresses
MIIs – Market Infrastructure Institutions
RTAs – Registrar and Transfer Agents
UPI – Unified Payments Interface
AMFI – Association of Mutual Funds in India
MF – Mutual Fund
SEBI SI Portal – SEBI Intermediary Portal
SIP – Systematic Investment Plan

References

Disclaimer

The information provided in this article is intended for general informational purposes only and should not be construed as legal advice. The content of this article is not intended to create and receipt of it does not constitute any relationship. Readers should not act upon this information without seeking professional legal counsel.