 "According to Sebi, around 8,000 registered intermediaries are expected to transition to verified UPI IDs that are standardised and issued via validated bank handles.")
The Securities and Exchange Board of India (Sebi) has directed all stock market intermediaries, including brokers, mutual funds, and portfolio managers, to use verified Unified Payments Interface (UPI) handles for investor transactions from October 1, 2025. The move aims to strengthen payment security and prevent fraud in securities markets.
Sebi Chairperson Tuhin Kanta Pandey said the initiative is intended to reduce payment frauds, assure investors that their money reaches verified entities, and standardise payment systems across intermediaries. The regulator developed the system in consultation with the National Payments Corporation of India (NPCI), Self-Certified Syndicate Banks (SCSBs), and intermediary associations.
How to identify verified UPI ID?
A verified UPI ID can be identified by its clear structure and visual cues: each intermediary’s ID will include a category-based suffix such as “.brk” for brokers, “.mf” for mutual funds, or “.pms” for portfolio managers, followed by a verified bank handle like “@validhdfc” or “@validicici.” During payment, a green triangle with a thumbs-up icon will appear beside the ID to confirm its authenticity. Investors can also verify the ID using the upcoming “Sebi Check” tool by scanning a QR code or manually entering the UPI ID to ensure it belongs to a registered entity.
According to Sebi’s circular issued on Wednesday, around 8,000 registered intermediaries are expected to transition to verified UPI IDs that are standardised and issued via validated bank handles.
Verified handles and investor benefits
Each intermediary will receive a unique UPI ID comprising a category-based suffix—for example, “.brk” for brokers, “.mf” for mutual funds, and “.pms” for portfolio managers—followed by a verified bank handle such as “@validhdfc” or “@validicici”.
The “Sebi Check” tool, to be launched soon, will enable investors to confirm the legitimacy of UPI IDs and bank details by scanning a QR code or entering the UPI manually. A missing visual icon or failed verification will indicate a potential fraud risk.
Investors may still use other payment options like NEFT, RTGS, IMPS, or cheques, but verified UPI handles are encouraged for enhanced safety.
Intermediaries have been given time until December 8, 2025, to switch over, after which old UPI IDs will be discontinued. Sebi’s June 11 circular also clarified that only banks listed as Self-Certified Syndicate Banks can issue these “@valid” handles.
Impact Shorts
More ShortsThe new system is expected to make investor payments more secure, reduce impersonation risks, and help investors confidently identify genuine intermediaries in India’s securities market.