SEBI mandates verified UPI handles for market payments from October 1

In a major move to bolster digital payment security in India’s financial markets, the Securities and Exchange Board of India (SEBI) has announced that all stock market intermediaries—such as brokers, mutual funds, and portfolio managers—must adopt verified UPI handles starting October 1, 2025.

As per SEBI’s circular released on June 11, over 8,000 registered intermediaries will be required to collect investor payments using unique, standardized UPI IDs issued through validated bank handles (e.g., @validhdfc). These verified UPI IDs will display a green triangle and thumbs-up icon for authenticity, aiming to reduce fraudulent transactions and standardize payment collection.

While investors may continue using traditional payment options like NEFT and IMPS, those opting for UPI must use these new verified IDs.

To assist investors, SEBI is also launching a "SEBI Check" tool, allowing users to verify the UPI credentials of intermediaries before initiating payments. This initiative was developed in collaboration with the National Payments Corporation of India (NPCI) and Self-Certified Syndicate Banks (SCSBs), who are the only entities authorized to issue these verified handles.

Each intermediary will have a unique ID format (e.g., abc.brk@validhdfc) to ensure clarity and traceability.

SEBI Chairperson Tuhin Kanta Pandey emphasized that the measure aims to “reduce payment frauds, increase investor confidence, and bring uniformity in UPI payment collection.” A transition period until December 8, 2025, has been provided, after which old UPI IDs will be discontinued.

SEBI also plans to run a two-year nationwide investor awareness campaign focusing on cybersecurity, digital payment safety, and prevention of financial fraud.

Whole-time SEBI member Ananth Narayan G urged investors to use the upcoming verification features before making payments, reinforcing the need for diligence in digital transactions.

This regulatory step marks another stride in India’s journey towards secure and standardized digital finance.