Context:
To strengthen investor protection and curb rising cases of fraud and impersonation in capital markets, the Securities and Exchange Board of India (SEBI) has introduced a mandatory UPI handle format – @valid – for all registered intermediaries.
Key Highlights:
New UPI Handle Format: @valid
- All SEBI-registered intermediaries (e.g. stockbrokers, mutual funds, research analysts, investment advisors) must use the @valid UPI ID (e.g.,
abc.bkr@validhdfc,xyz.mf@validhdfc). - Implementation deadline: October 1, 2025.
- Green thumbs-up icon will accompany verified UPI IDs to help users, especially non-English speakers, identify legitimate entities.
Purpose and Impact
- Ensures that investors transfer funds only to verified intermediaries.
- Aims to reduce fraud, phishing, and impersonation risks in financial transactions.
- No impact on existing SIPs (Systematic Investment Plans); however, all new investments must use the new UPI handles.
Verification and Rollout
- UPI handles will be issued only after verification on SEBI’s portal.
- An estimated 8,000–9,000 intermediaries will migrate to the new system.
- Old UPI handles to run in parallel temporarily before full phase-out.
SEBI Check-Supporting Measures
- SEBI will launch a tool called “SEBI Check” for real-time verification of UPI IDs and bank details of intermediaries.
- NPCI (National Payments Corporation of India) will issue operational guidelines soon.
- Use of the @valid handle for non-payment purposes will be prohibited.
UPI Transaction Limit
- The â‚ą5 lakh daily UPI limit for capital market transactions remains unchanged.
BS & TH
