Sebi introduces UPI safeguard mechanism 'Valid' and "SEBI Check" to prevent fraud in market transactions

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Key pointers:

  • New Mechanism Introduced: SEBI launched ‘Valid’—a UPI-based payment system for market intermediaries—on June 11, 2025.

  • Go-Live Date: The ‘Valid’ UPI payment mechanism will become operational from October 1, 2025.

  • Purpose: Enables SEBI-registered entities (brokers, mutual funds, investment advisers, research analysts, etc.) to securely collect funds from clients via UPI.

  • Unique UPI IDs: Regulated entities will have a unique UPI ID with the format entitytype@validbankname (e.g., abc.brk@validhdfc for a broker using HDFC).

  • Security Feature: A green thumbs-up icon in a triangle will appear to signify the legitimacy of the transaction.

Verification Tool – ‘SEBI Check’: a tool designed to help investors confirm the authenticity of UPI addresses in real time.

  • Investors can verify UPI IDs by entering the ID or scanning a QR code.
  • Ensures payments are made only to genuine SEBI-registered intermediaries.
  • Daily Limit: Transactions via UPI will have a daily upper limit of ₹5 lakh, subject to future review.
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