In a significant move to fortify investor protection and combat rising cyber fraud in the securities market, the Securities and Exchange Board of India (SEBI) is set to launch a new tool to verify the authenticity of Unified Payments Interface (UPI) addresses. This initiative, known as "SEBI Check," aims to create a more secure and transparent payment ecosystem for investors, ensuring that their funds are transferred only to verified and legitimate intermediaries.

SEBI Chairman Tuhin Kanta Pandey announced the new UPI verification mechanism, stating that the regulator will introduce 'SEBI Check', a tool designed to help investors confirm the authenticity of UPI addresses in real time. Addressing a press conference, he said, “This is part of our broader commitment to bring enhanced transparency and security to retail investors.”

The "SEBI Check" tool, slated to go live on October 1, 2025, will allow investors to verify the legitimacy of UPI IDs before making payments to SEBI-registered intermediaries such as brokers, investment advisors, and research analysts. Investors will have the option to either scan a QR code or manually enter the UPI ID to retrieve and verify associated bank details, including the account number and Indian Financial System Code (IFSC). By confirming these details, investors can ensure that their payments are indeed directed to the correct and authorized recipients.

In conjunction with the "SEBI Check" tool, SEBI is also introducing a standardized UPI ID structure exclusively for SEBI-registered intermediaries. These validated UPI handles will feature a unique identifier, "@valid," combined with the name of the self-certified syndicate bank. For example, an intermediary's UPI ID might look like "abc.brk@validhdfc," where "abc.brk" represents the intermediary's name and category (in this case, a broker), and "@validhdfc" signifies that the ID is verified and associated with HDFC Bank.

To further enhance transaction transparency, SEBI will implement a visual verification mechanism. Whenever an investor initiates a payment to a validated UPI handle, a distinctive "thumbs-up inside a green triangle" icon will appear, confirming the legitimacy of the recipient. Intermediaries will also be required to issue QR codes that prominently display this icon, making it easier for investors to verify payment details before proceeding. The absence of this thumbs-up icon should serve as a warning to investors, cautioning them against proceeding with the payment.

This new framework is expected to cover nearly 9,000 registered intermediaries, ensuring broad coverage across the securities market. The National Payments Corporation of India (NPCI) will work with banks to allocate the new UPI handles, and banks will be responsible for making the necessary system changes to integrate the tool. According to SEBI, a circular detailing the operational process will be issued soon to guide intermediaries and banks in implementing these changes.

SEBI has also placed a daily UPI transaction cap of ₹5 lakh for capital market uses and may revisit this limit in consultation with NPCI.

SEBI Chairperson Tuhin Kanta Pandey emphasized the importance of this initiative in combating cyber fraud and enhancing investor confidence. "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 mechanism that assures them they are investing in the right place," Pandey stated.

The introduction of validated UPI handles and the "SEBI Check" tool represents a proactive step towards creating a safer and more secure investment environment for Indian investors. By empowering investors with the ability to verify the authenticity of UPI IDs and ensuring that payments are directed only to verified entities, SEBI aims to curb fraudulent activities and foster greater trust in the digital financial ecosystem.