Watch | Sebi unveils new tool to verify authentic UPI addresses for payments

India’s markets regulator on Wednesday (June 11) announced a mandatory shift to a new Unified Payments Interface (UPI) mechanism for all registered intermediaries collecting funds from investors, a move aimed at reducing fraud and enhancing the safety of financial transactions in the securities market.

The new system will take effect from October 1, Securities and Exchange Board of India (Sebi) Chairperson Tuhin Kanta Pandey said at a press briefing.

“This innovative mechanism is set to significantly improve the safety and accessibility of financial transactions within the securities market by providing a verified and secure payment channel,” Pandey said.

Here’s what he said:

#WATCH | Mumbai | SEBI today launched a new tool to verify the authenticity of UPI addresses

SEBI Chairman Tuhin Kanta Pandey says, "We are introducing a system within the UPI system to check whether or not a UPI address is genuine, like that of a bank, broker, etc. This would… pic.twitter.com/awpnMBfUv2

— ANI (@ANI) June 11, 2025

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New UPI handles and verification tool

Under the directive, Sebi-registered intermediaries will be required to use validated UPI addresses designed specifically for investor transactions. These UPI IDs must be clearly communicated to investors and offered as a mandatory payment option, though investors may still use other payment modes including IMPS, NEFT, RTGS, or cheques.

To further support investor awareness and prevent impersonation, Sebi is developing a new feature called “Sebi Check,” which will allow investors to verify the authenticity of UPI IDs. Users can confirm a registered intermediary’s details either by scanning a QR code or by manually entering the UPI ID, which will reveal associated bank account numbers and IFSC codes.

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The new handles will allow investors to transfer up to Rs 5 lakh per day to verified intermediaries.

Combating cyber fraud and fake apps

The move comes amid rising incidents of cyber fraud, including the use of fake apps and phishing links that impersonate legitimate brokers. According to Pandey, many investors have fallen victim to deceptive apps, including those promoted via WhatsApp or similar-looking platforms.

“People are investing money thinking that they are actually dealing with registered brokers, but they are not,” Pandey said. “A huge amount of money has been lost this way.”

Pandey said the regulator is working with app marketplaces to ensure only verified applications are displayed. Sebi has already whitelisted broker apps hosted on official exchange websites and is coordinating with the Google Play Store and Apple App Store to improve vetting.

To prevent disruption in ongoing mutual fund investments, existing systematic investment plans (SIPs) using current UPI IDs will remain valid. However, new SIPs, as well as renewals and extensions, will need to use the newly mandated UPI structure.

QR codes and awareness campaigns

Sebi is also requiring intermediaries to generate QR codes featuring a distinctive “thumbs-up” logo, which will be linked to the verified UPI IDs. Scanning these codes will offer a secure and reliable payment method for investors.

Pandey said Sebi will roll out investor protection campaigns over the next two years, with a focus on cybersecurity and fraud prevention.

“We have 130 million unique investors now, and many new investors are entering the market,” he said. “We needed a system where people can know systemically that they are investing through the right channel.”

The shift to a secure UPI infrastructure comes after Sebi floated a consultation paper on the issue in January.