Investor Alert: SEBI Introduces New UPI Safety Net Against Scam Brokers

Indian Regulator, Securities and Exchange Board of India (SEBI) has announced a new Unified Payment Interface (UPI) address framework designed to Protect Investors from Fraud.

Why Does SEBI Need to Launch a New UPI Framework?

In India, UPI scam cases are on the rise. People are losing their hard-earned money within minutes. Digital arrest cases are increasing day by day. The number of UPI users has grown significantly in recent years, and with that, UPI scams have also surged. Many people are unknowingly sending money to unauthorized or fake accounts. When someone makes a UPI payment today, the UPI address has two main parts:

• Username: A name set by the service provider (like a broker or mutual fund), ending with a tag that shows their type — for example, .brk for brokers or .mf for mutual funds.

• “@valid” Handle: A unique UPI handle that ends with @valid, linked to a verified bank. These handles are issued only by the National Payments Corporation of India (NPCI) and are given exclusively to intermediaries registered with SEBI for collecting payments.

SEBI Adds two features

SEBI has introduced two new features to help investors make safe payments:

1. Thumbs-Up Icon: When paying a SEBI-registered intermediary, investors will see a green triangle with a thumbs-up symbol, confirming the payment is going to an authorized entity.

2. QR Code with Logo: Registered companies must provide QR codes that clearly display the thumbs-up logo, making it easy for investors to identify safe payment options.

“SEBI Check” will launch on October 1, 2025.

SEBI will also launch a new tool called “SEBI Check” to help investors stay safe. With this tool, investors can:

• Check UPI IDs by either scanning a QR code or typing in the UPI ID manually.

• Verify bank details like the account number and IFSC code of SEBI-registered intermediaries.

About SEBI

The Securities and Exchange Board of India (SEBI) is the regulating authority for India's securities and commodity markets. The Securities and Exchange Board of India's fundamental functions include ...protecting the interests of investors in securities, promoting the development of, and regulating the securities market.

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