To boost investor safety and fight unauthorised cash assortment, the Securities and Change Board of India (Sebi) on Wednesday introduced it’s going to introduce a structured and validated Unified Fee Interface (UPI) tackle mechanism for its registered intermediaries.
The UPI tackle will characteristic the unique “@legitimate” deal with for all-Sebi registered investor-facing intermediaries. These validated handles shall be completely allotted by the Nationwide Funds Company of India (NPCI) just for cost assortment by SEBI-registered intermediaries.
The brand new mechanism will present traders with the choice to switch funds on to the requisite financial institution accounts of intermediaries which have been validated with Sebi. The switch of funds via this course of will guarantee traders that their funds are being made to the verified and registered market intermediaries.
The deal with will characteristic a singular and unique identifier, “@legitimate”, mixed with the identify of the self-certified syndicate financial institution. For instance, for a registered dealer ABC Ltd, having an account with XYZ financial institution, the unique UPI ID could be – abc.brk@validXYZ.
It could be necessary for intermediaries to acquire and make out there this structured UPI tackle to their traders, Sebi mentioned.
The regulator mentioned the brand new UPI tackle construction will assist in addressing the rising challenge of impersonation and improve investor confidence.
“This revolutionary mechanism is about to considerably enhance the security and accessibility of economic transactions inside the securities market by offering a verified and safe cost channel,” Sebi Chairman Tuhin Kanta Pandey mentioned.
‘SEBI Examine’ extra safety layer for funds
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Apart from, the regulator mentioned it was creating a brand new performance referred to as ‘SEBI Examine’ to offer an extra layer of safety and assist traders confirm the authenticity of an entity earlier than continuing with any monetary transaction.
This performance will enable traders to confirm the authenticity of UPI IDs both by scanning a QR code or by getting into the UPI ID manually. By means of this, traders can affirm the financial institution particulars corresponding to checking account quantity and Indian Monetary System Code (IFSC) of a registered middleman.
The regulator mentioned that the ‘SEBI examine’ instrument will add a significant layer of safety, permitting traders to confirm an entity’s authenticity earlier than any monetary transaction.
Sebi mentioned that validated UPI tackle and ‘SEBI Examine’ shall be out there to customers from October 1, 2025.
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