SEBI to Launch ‘SEBI Check’ for UPI Payment Handle Verification

by Ashok

Posted on June 12, 2025

The Securities and Exchange Board of India (SEBI) has announced the launch of a new digital tool called ‘SEBI Check’ to enhance investor safety by allowing verification of UPI payment handles before making financial transactions in the securities market

Key Highlights of SEBI Check’:

• Purpose:
  ‘SEBI Check’ is designed to help investors verify the authenticity of UPI IDs used by SEBI-registered intermediaries, such as brokers, mutual fund distributors, research analysts, and investment advisers, before transferring funds. This initiative aims to curb rising incidents of fraud involving unregistered entities impersonating legitimate intermediaries.
• Functionality:
  Investors can use ‘SEBI Check’ to:
  • Scan a QR code or
  • Manually enter a UPI ID
    The tool will then display linked bank account details (such as account number and IFSC code) and confirm whether the UPI ID belongs to a SEBI-registered entity.
• Launch Timeline:
  The system is set to go live on October 1, 2025. From this date, all SEBI-registered intermediaries collecting funds from investors must use verified UPI handles.
• New UPI Handle Structure:
  SEBI is introducing a dedicated UPI handle format, ‘@valid’, for registered intermediaries. For example, a broker named ABC operating via HDFC Bank would use a handle like abc.bkr@validhdfc. Payments to these handles will be accompanied by a visual verification cue—a green thumbs-up icon inside a triangle—to signal legitimacy.
• Scope and Coverage:
  The new mechanism will apply to all SEBI-registered entities involved in fund collection, covering nearly 8,000 to 9,000 intermediaries.
• Investor Empowerment:
  By enabling real-time verification, ‘SEBI Check’ empowers investors to ensure their funds are transferred only to genuine, regulated entities, thereby reducing the risk of falling victim to phishing, impersonation, or unauthorized fund collection scams.
• Regulatory Collaboration:
  The National Payments Corporation of India (NPCI) will work with banks to allocate and verify these new UPI handles, ensuring robust integration and security.

Why This Matters:

• The move comes in response to increasing cases of cyber fraud and unauthorized fund collection by entities misusing unverified UPI handles. By mandating the use of verified UPI IDs and providing an easy verification tool, SEBI aims to significantly enhance the safety, transparency, and reliability of digital payments in India’s capital markets.

Summary Table

Conclusion

• SEBI’s ‘SEBI Check’ and the new ‘@valid’ UPI handle system represent a major step forward in safeguarding investors against digital payment fraud in the securities market, ensuring that only verified, regulated entities can collect funds via UPI from October 1, 2025

Ref: SEBI to launch ‘SEBI Check’ to check validity of UPI payment handles to enhance investors’ safety
SEBI mandates dedicated UPI address for registered intermediaries