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Mumbai, June 11 (PTI): To bolster investor protection and curb fraudulent practices, the Securities and Exchange Board of India (SEBI) has announced the rollout of a new UPI-based payment mechanism for all SEBI-registered intermediaries involved in collecting funds from investors. The initiative is aimed at ensuring safer and more transparent financial transactions in the securities market and will be implemented from October 1, 2025, SEBI Chairperson stated.
The move comes in response to a growing number of cases where investors have fallen victim to scams perpetrated by unregistered entities impersonating legitimate firms. To counter this, SEBI has introduced a new UPI address format exclusively for registered intermediaries, creating a secure and verified payment framework.
In a further step towards investor empowerment, SEBI is also developing a digital verification feature called “SEBI Check”. This tool will allow users to authenticate UPI IDs by either scanning a QR code or manually entering the UPI ID, after which it will display the corresponding bank details, including the account number and IFSC code of the registered intermediary.
This initiative follows a public consultation launched in January. Highlighting the urgency of the issue, Pandey noted the rising number of cyber frauds involving cloned apps and misleading communications on platforms like WhatsApp. These deceptive tactics have led unsuspecting investors to transfer funds to fraudulent platforms, mistaking them for legitimate brokers—resulting in significant financial losses.
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