SEBI’s UPI Verification Tools: A Step Towards Scam-Free Investing | Business News

The feature ensures payments go only to SEBI-registered entities. (representative image)

The Securities and Exchange Board of India (SEBI) has launched two new measures designed to improve the safety of digital transactions for investors. Named “Validated UPI Handles” and “SEBI Check,” these tools are intended to curb fraud by ensuring that fund transfers occur only through verified intermediaries registered with SEBI, such as brokers and mutual funds.

SEBI had initially announced these initiatives in a press release and circular issued in June this year. They are now being implemented. According to SEBI, over 90% of brokerage firms, along with all mutual funds, have already adopted this system, signalling a major step forward in protecting investors from digital fraud.

How The @valid Handle Works

From now on, UPI IDs of intermediaries registered with SEBI will feature a unique “@valid” extension, provided by the National Payments Corporation of India (NPCI). These IDs will also carry category-specific tags, such as “.brk” for brokers and “.mf” for mutual funds. SEBI has shared examples such as abc.brk@validhdfc or xyz.mf@validicici.

To make verification easier for investors, a “thumbs-up inside a green triangle” symbol will appear during transactions. SEBI has said that if this icon does not appear, it should be treated as a warning, and users must refrain from proceeding with the payment.

In addition, each registered intermediary will be assigned a distinctive QR code featuring the thumbs-up symbol at its centre. Scanning this QR code will ensure that funds are transferred to the correct entity without any confusion.

SEBI Check Tool For Verification

The second initiative, known as SEBI Check, enables investors to verify the details of a bank account or UPI ID before transferring funds. Verification can be carried out in two ways, either by entering the account number and IFSC code or by directly checking the “@valid” UPI ID.

Investors can access the tool through the SEBI Check portal at https://siportal.sebi.gov.in/intermediary/sebi-check or through SEBI’s Saarthi mobile app. SEBI has urged all investors to utilise this facility prior to making any payments, ensuring safer and more secure transactions.

Why These Measures Matter

SEBI has stated that these measures are meant to make payments more secure and transparent. The system ensures that funds are routed exclusively through verified entities, reducing the risk of fraud. Investors can also spot fake accounts easily by noting the absence of the thumbs-up symbol.

According to SEBI, this framework aims to build investor confidence by providing an easy way to verify details, prevent fraud and make investing safer for all participants.