SEBI Introduces Mandatory @valid UPI Handles to Curb Financial Fraud

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

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• 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 ₹5 lakh daily UPI limit for capital market transactions remains unchanged.

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