SEBI UPI Security Update
Investing in India’s securities market just got a whole lot safer. Starting October 1, 2025, the Securities and Exchange Board of India (SEBI) has mandated a powerful new set of SEBI UPI security measures designed to protect investors from fraud and enhance trust in digital payments. If you use UPI to invest in stocks, mutual funds, or other market instruments, these changes are critical for you to understand. The new system introduces validated UPI handles and a unique visual confirmation icon, making it easier than ever to verify that your hard-earned money is going to a legitimate, SEBI-registered entity.
This initiative comes at a time when UPI transactions dominate India’s payment landscape, with projections suggesting they will account for 65% of all transactions by 2026. While UPI’s convenience is undeniable, its widespread use has also attracted fraudsters. SEBI’s proactive step aims to plug these security gaps, ensuring that the ease of UPI payments doesn’t come at the cost of investor safety.
What Are the New SEBI UPI Security Rules?
The core of the reform lies in standardizing the UPI IDs used by SEBI-registered intermediaries like stockbrokers and mutual fund houses.
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The ‘@valid’ Handle: All official UPI IDs from registered intermediaries will now exclusively use the handle ‘@valid’. This is issued by the National Payments Corporation of India (NPCI) and serves as a mark of authenticity.
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Category-Specific Suffixes: To add another layer of clarity, the UPI ID will include a suffix indicating the type of intermediary. For example:
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A stockbroker’s UPI ID might look like:
brokername.brk@validbank -
A mutual fund’s UPI ID could be:
mfname.mf@validbank
This structure allows you to instantly identify the entity you are paying.
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The Green Triangle Thumbs-Up Icon: This is perhaps the most important visual cue for investors. When you make a payment to a validated UPI ID, your payment app will display a distinctive icon: a thumbs-up inside a green triangle. If you do not see this icon, it’s a major red flag that you might be dealing with an unauthorized or fraudulent entity.
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SEBI Check Verification Tool: To further empower investors, SEBI has launched “SEBI Check,” a digital tool available on its platform and the Saarthi mobile app. This feature allows you to independently verify the bank account details and UPI ID of any registered intermediary before making a payment.
These measures collectively create a closed and secure ecosystem for investment-related payments, significantly reducing the risk of you accidentally transferring funds to a fake or malicious account.
Why Was This Change Necessary?
Previously, intermediaries used regular UPI handles, making it difficult for investors to distinguish between a genuine registered broker and a fraudster with a similar-looking UPI ID. This ambiguity created opportunities for scams. By standardizing the format and introducing a clear visual verification mark, SEBI is eliminating this confusion. This SEBI UPI security overhaul ensures that payments are not just convenient but also transparent and secure.
Furthermore, this move is part of SEBI’s broader mandate to protect investor interests and maintain the integrity of the securities market. As more retail investors enter the market, driven by the ease of digital platforms, it becomes crucial to have robust safeguards in place. Over 90% of brokers have already adopted the new ‘@valid’ handle, ensuring a smooth transition for the majority of investors.
What This Means for You as an Investor
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Always Look for the Signs: Before confirming any UPI payment to your broker or mutual fund, always look for the ‘@valid’ handle, the correct suffix (.brk or .mf), and the green triangle icon.
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Use SEBI Check: If you have any doubts, use the SEBI Check tool to verify the intermediary’s credentials beforehand.
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Update Your Information: While existing SIPs may continue for a while, any new mandates or payments should use the new validated UPI IDs. Your broker or mutual fund should have already communicated their new UPI details to you.
This new framework for SEBI UPI security is a landmark reform. It not only strengthens the digital transaction infrastructure of India’s capital markets but also gives you, the investor, greater control and confidence. By paying attention to these new security features, you can ensure your investment journey is both seamless and secure.