The Securities and Exchange Board of India (SEBI) announced a significant set of measures aimed at shielding retail investors from UPI‑related scams, unveiling a new tool called “SEBI Check” along with a framework for verified “Valid” UPI IDs for registered market intermediaries. The announcement, made by Chairperson Tuhin Kanta Pandey, comes amid rising concerns over fraudsters posing as brokers or advisors to fleece investors via deceptive UPI transfers .
The SEBI Check feature, set to launch on October 1, 2025, will allow investors to verify before transferring funds by scanning a QR code or manually entering a UPI ID. It will validate the associated bank account number and IFSC to confirm whether the UPI address belongs to a SEBI‑registered entity.
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Complementing SEBI Check, the regulator is also implementing a standardized UPI ID structure assigned exclusively to SEBI‑registered intermediaries. Known as “Valid”, these UPI handles will carry suffixes like .brk for brokers and .mf for mutual fund houses, followed by @valid<bank>. A green “thumbs‑up” icon will appear for validated recipients, providing a clear, visual indication of authenticity to investors .
This system will be supported by the National Payments Corporation of India (NPCI) and management by bank partners, enabling seamless adoption. SEBI has placed a daily UPI transaction cap of ₹5 lakh for capital market uses, although it may revisit this limit in consultation with NPCI .
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Pandey explained that the initiative marks a key milestone: “With over 130 million unique retail investors, it is essential that they can transact through a system they trust.” He emphasized the dual importance of technological safeguards and real‑time verification in restoring confidence in digital investment channels .
About the Author – Anirudh Mittal is a B.Sc. LL.B. (Hons.) student at National Forensic Sciences University, Gandhinagar, with a keen interest in corporate law and tech-driven legal change.