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New Indian Express
2 days ago
- Business
- New Indian Express
Digital shield for investors: Sebi to launch UPI safeguard to prevent fraud
MUMBAI: With increasing incidents of investors getting defrauded by unscrupulous elements, the regulator Sebi is developing a digital shield to protect investors, using an NPCI-verified UPI Id for each market participant and bank. The new tool called 'Valid' will be launched from October 1, which, along with the tool 'Sebi Check', will validate payment authenticity. By October 1, all market makers who number around 9,000 will have to roll out this feature on their trading platforms, Sebi chairman Tuhin Kanta Pandey told reporters here Wednesday. "We have roped in the NPCI for the tool and the corporation will be creating unique Ids for each bank, which can be verified on the Sebi Check," he added. Through Sebi's payment mechanism '@Valid', all market intermediaries will be able to use it to collect funds from clients through the UPI app, benefiting brokers, mutual funds, research analysts, investment advisers, and other market intermediaries, he added. Sebi had introduced the UPI as a mode of payment in the market for the first time in 2019. The successful experience and efficiency brought in by the UPI resulted in its inclusion in various other processes as well. Sebi has fixed an upper limit of Rs 5 lakh/day for fund transactions done through UPI. Market intermediaries will now have a unique UPI address to collect funds from clients, with Sebi unveiling the 'Valid' mechanism. The development comes after incorporating industry feedback following consultations, and after assessing the readiness of market participants.
Economic Times
2 days ago
- Business
- Economic Times
Sebi to launch UPI IDs for registered entities to avoid trading frauds
SEBI will introduce UPI IDs for registered intermediaries collecting funds, enhancing payment security and transparency for investors. This initiative, effective October 1, aims to combat investor fraud by ensuring funds reach only verified entities. SEBI is also collaborating with app stores and launching a 'Sebi Check' tool to further validate registered intermediaries. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Transaction limits Market regulator Securities and Exchange Board of India Sebi ) on Wednesday said that it will issue UPI IDs for Sebi-registered intermediaries who collect funds in a bid to avoid frauds and trading new ecosystem will facilitate a secure and transparent payment system for investors to pay their money only to registered intermediaries."Keeping in view the significant advancements in payment systems and with an objective to further enhance accessibility and safety in the securities market, it has been decided to put in place a structured Unified Payment Interface (UPI) address mechanism for SEBI-registered investor-facing intermediaries to collect funds from their investors. This mechanism shall provide investors with the option to transfer funds directly to the requisite bank accounts of intermediaries that have been validated with SEBI," a Sebi circular the use of this structured UPI mechanism by investors will remain optional, it is mandatory for intermediaries to obtain and make available a structured UPI address to their investors.A UPI address or UPI ID is typically made up of a username and a handle separated by an '@' symbol. The username will be an alphanumeric ID that will be generated for the user while the handle used will be a unique identifier linked to the bank of the registered the UPI transaction have certain limits, each app and bank impose its own limits. The upper limits set by NPCI for capital market transactions is between Rs 2 lakhs and Rs 5 lakhs per market regulator in January proposed to create a unique Unified Payments Interface (UPI) address to ensure the investor money reaches only to the SEBI registered intermediaries. The move is expected to help investors identify, isolate and avoid unregistered entities with the latter not having access to this unique UPI step follows a rise in investor fraud complaints through cloning of apps and other means, Sebi Chairman Tuhin Kanta Pandey said in a media said that Sebi's circular on this will be issued shortly, and it will come into force from October market regulator has already taken steps to mitigate these frauds by whitelisting of apps, the information on which can be obtained from the exchanges, Pandey move comes after consultation with stakeholders like exchanges, banks, and payment gateways. With the new system in place, investors will be able to verify if the intermediary collecting money is said that Sebi is also working with online application stores to ensure that only verified apps are available on them. In addition to this, the regulator will also launch a 'Sebi Check' tool for investors to verify the validity of registered entities.
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First Post
2 days ago
- Business
- First Post
Sebi unveils new tool to verify authentic UPI addresses for payments
From October, Sebi-registered intermediaries will be required to use validated UPI addresses designed specifically for investor transactions read more 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. STORY CONTINUES BELOW THIS AD 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… — ANI (@ANI) June 11, 2025 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. 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. STORY CONTINUES BELOW THIS AD 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.
Time of India
2 days ago
- Business
- Time of India
Registered Intermediaries: Sebi Introduces New UPI Payment Mechanism to Safeguard Investors from Fraud, ET LegalWorld
Markets regulator Sebi on Wednesday said it has mandated a new UPI payment mechanism for all registered intermediaries, who collect funds from investors, to improve the safety and accessibility of financial transactions within the securities market. The Unified Payments Interface (UPI) payment mechanism will go live from October 1, 2025, Sebi chief Tuhin Kanta Pandey told reporters here. In recent years, unregistered entities have increasingly misled investors by fraudulent activities. To address the issue of impersonation and enhance investor confidence, the regulator has mandated a new UPI address structure for all Sebi-registered intermediaries who collect funds from investors. Advt Advt "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 empower investors, the market regulator is developing a new functionality called "Sebi Check".This upcoming tool will enable investors to verify the authenticity of UPI IDs either by scanning a QR code or entering the UPI ID manually and confirming the bank details, such as the account number and India Financial System Code (IFSC) of a registered January, the Securities and Exchange Board of India (Sebi) floated a consultation paper in this Sebi chief said that there is a lot of public concern and many people are becoming prey to fraud, cyber frauds in which a lot of cloning of apps are taken to some similar-looking apps of the brokers or through WhatsApp, and the people then are investing in that money thinking that they are actually investing with the registered brokers but they are actually not. They are being just taken to this and a huge amount of money many people have lost, he said."... we have to find out some systemic solutions to it because we have 130 million unique investors now and a lot of new investors are coming and we needed a system where at least in the securities market the people are investing they should invest through a method where they are able to know systemically whether they are really investing in the right one," Pandey to the market regulator, the validated payment handle will be available to all investors to transfer up to Rs 5-lakh per day to their respective registered also said that this mechanism ensures that the investors are equipped with the right tools and information to make decisions, adding that we are sure that now investors would be able to identify and approach Sebi-registered intermediaries for their investment while it is mandatory for all intermediaries to secure these UPI IDs and they also need to make investors aware of the new handle and mandatorily offer it as one of the payment options to them, the investor can choose their preferred mode of payment such as UPI, IMPS, NEFT, RTGS or cheques, as per the market this, the new UPI IDs are only for intermediaries to obtain while investors can continue to use their existing UPI further said that Sebi has already taken some of the steps including whitelisting apps, which are already there on exchange sites, going forward it will be working with the PlayStore and iOS and Android to see that only properly validated apps are only displayed, and that work of verified status is on is to the market regulator, the intermediaries will have to stop accepting payments using the current UPI IDs post the specified the existing mode of fund transfer for ongoing Mutual Fund SIPs will continue to remain in force to avoid disruption, the new SIPs and renewal and extension of existing SIPs must be done using UPI IDs is also mandatory, as per Sebi, to generate QR codes with the "thumbs-up" logo for the convenience of investors, as scanning of QR codes is more secure and reliable." (over) the next two years we will have coordinated investor protection campaigns on basic themes, and one of the first themes will be cyber security, prevention of cyber frauds, investing safe, and providing a safe space," he said. Join the community of 2M+ industry professionals Subscribe to our newsletter to get latest insights & analysis. Download ETLegalWorld App Get Realtime updates Save your favourite articles Scan to download App
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Business Standard
2 days ago
- Business
- Business Standard
Sebi to launch UPI authentication tool for safer securities transactions
The Securities and Exchange Board of India (Sebi) on Wednesday announced a new Unified Payments Interface (UPI)-based mechanism to help investors confirm the authenticity of payment addresses during securities market transactions, as part of its efforts to tackle rising cyber fraud. 'There is a lot of public concern regarding cyber fraud. We have to find systemic solutions to it. We have 130 million unique investors now, and we need a system in the securities market where they invest through a system where they know they are investing at the right place,' Sebi Chairperson Tuhin Kanta Pandey said at a press briefing in Mumbai. The market regulator has mandated that all intermediaries collecting investor funds — such as brokers, investment advisers, and research analysts—transition to this system by October 1, 2025. The new structure is expected to cover nearly 9,000 registered intermediaries. Once the system is live, intermediaries will apply for UPI handles through Sebi's intermediary portal. Banks will then verify and assign these handles within their systems to ensure their legitimacy. '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 be very handy. It will be implemented from 1st October,' Pandey said. To assist investors, Sebi is also developing a tool called 'Sebi Check', which will enable users to verify the UPI ID of an intermediary by scanning a QR code or entering the ID manually. The tool will display associated bank details such as account number and IFSC code. '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.
