New SEBI-Validated UPI IDs: Secure Payments for Investors Explained

SEBI Introduces Special “@valid” UPI IDs for Secure Investor Payments

The Securities and Exchange Board of India (SEBI) has taken a significant step to enhance transparency and security in financial transactions within the securities market.

In its latest circular dated June 11, 2025, SEBI mandated the use of standardised, validated, and exclusive UPI IDs for all SEBI-registered intermediaries. This initiative aims to protect investors from fraudulent transactions by ensuring payments are made only to verified entities.

Key Features of the New UPI IDs

1. Structured UPI Address Format
   • Username: Combines the intermediary’s business name + segment abbreviation (e.g., abc.brk for brokers, xyz.mf for mutual funds).
   • Handle: Uses @valid followed by the bank name (e.g., @validhdfc).
   • Example: A broker’s UPI ID would look like abc.brk@validhdfc.
2. Visual Trust Indicator
   • A green triangle with a thumbs-up icon will appear during transactions, confirming the recipient’s authenticity. Absence of this icon signals potential risk.
3. Transaction Limits
   • UPI payments for capital market transactions are capped at ₹5 lakh per day, aligning with NPCI’s retail limits.
4. SEBI Check Tool
   • Investors can verify UPI IDs and bank details via a new QR code or manual entry feature to prevent fraud.

Why This Matters for Investors

• Reduced Fraud Risk: Payments are routed only to SEBI-verified intermediaries.
• Easy Identification: Segment-specific suffixes (e.g., .brk, .mf) clarify the intermediary type.
• Mandatory Adoption: Intermediaries must phase out old UPI IDs by 180 days post-circular issuance.

Timelines to Remember

Activity	Start Date	End Date
Banks obtain SEBI credentials	T-Day	T + 30 days
Intermediaries adopt new UPI IDs	T + 90 days	T + 105 days
Old UPI IDs discontinued	–	T + 180 days
Full implementation	October 1, 2025	–

What Investors Should Do

• Always check for the “@valid” handle and thumbs-up icon.
• Use the SEBI Check tool to verify UPI IDs before payments.
• Prefer scanning official QR codes from intermediaries.

Update [1st October 2025]

Starting 1st October 2025, the use of a validated UPI is now mandatory for payments to financial intermediaries.

To support this initiative, SEBI has launched a utility called SEBI Check, which allows you to verify the authenticity of any UPI payment channel. You can use this tool to check the legitimacy of a UPI ID, QR code, or bank account before making a payment.

Verify your payments here: SEBI Check Portal

Conclusion

SEBI’s exclusive UPI IDs mark a leap toward secure digital payments in India’s securities market. By adopting these measures, investors gain confidence, while intermediaries align with robust regulatory standards. Stay informed and transition smoothly to the new system by October 2025!