The market regulator is preparing to land another punch at unregistered entities/finfluencers' business. It has proposed a system through which investors can be sure that they are paying regulated or registered entities. It suggested the use of UPI IDs that will be generated by a particular software and will include the name if the intermediary and the segment in which it operates.
In a consultation paper issued on January 31, the Securities and Exchange Board of India (SEBI) has also suggested increasing the upper limit placed on daily transactions done through UPI to Rs 5 lakh from the current Rs 2 lakh per day, but only for capital market transactions.
The paper said, "over the years, many unregistered entities have misled investors by unauthorized collection of money, which is mostly siphoned-off for their personal gains. There is a need to proactively restrict their proliferation and thereby enable investors to identify SEBI registered market intermediaries and make requisite payments to them in a more legitimate, convenient, and efficient way".
The UPI IDs, the regulator hopes, will help investors ensure that their payments are reaching only SEBI-registered intermediaries and that investors can therefore steer clear of unregistered entities.
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