SEBI’s Unified Payment Interface (UPI) Initiative for Securities Market

Overview

The Securities and Exchange Board of India (SEBI) has introduced a structured Unified Payment Interface (UPI) address mechanism to enhance accessibility, safety, and trust in the securities market. This initiative enables investors to transfer funds directly to the verified bank accounts of SEBI-registered investor-facing intermediaries, ensuring secure and seamless transactions.

Key Objectives

Enhanced Accessibility: Leverages advancements in UPI payment systems to simplify fund transfers for investors.
Improved Safety: Ensures payments are made only to SEBI-verified and registered market intermediaries.
Investor Confidence: Provides assurance that funds are securely transferred to legitimate intermediaries.
Streamlined Process: Introduces a standardized UPI address mechanism for efficient and reliable transactions.

How It Works

The UPI address mechanism allows investors to:

Transfer funds directly to the bank accounts of SEBI-registered intermediaries.
Use a secure and verified UPI ID linked to the intermediary’s validated bank account.
Benefit from a transparent process that minimizes the risk of fraudulent transactions.

User Guide

Benefits for Investors

Security: Payments are routed to verified accounts, reducing the risk of fraud.
Convenience: Seamless integration with UPI platforms for quick and easy fund transfers.
Trust: Assurance that funds are transferred to legitimate, SEBI-registered intermediaries.
Accessibility: Simplified payment process, making the securities market more inclusive.

Why This Matters

By integrating UPI’s advanced payment infrastructure with SEBI’s regulatory oversight, this mechanism strengthens the securities market ecosystem, making it safer and more accessible for investors. It reflects SEBI’s commitment to fostering innovation while prioritizing investor protection.

Frequently Asked Questions

Is it compulsory for the investors to use the new handle only?

The investors can choose their preferred mode of payment, such as UPI, IMPS, NEFT, RTGS, or Cheques. If an investor opts to use UPI for the payment to registered intermediaries, then they have to do so only using the new UPI IDs allotted to registered intermediaries.

What should I check while making payment using the new UPI IDs/ QR Code?

Investors need to keep following things into consideration:

1. The UPI ID should properly show the name of the intermediary, followed by the short abbreviation of their category for example “brk” for Brokers, “mf” for Mutual Funds to the left of the “@” character.

2. On the right side of the “@”, the new and exclusive handle “@valid” should be present, followed by the bank name.

3. On the confirmation screen, the app should show a white thumbs-up icon inside a green triangle.

4. The QR code generated using the utility will have a white thumbs-up icon inside a green triangle. It will also display the UPI ID just below the QR code.

Do investors also need to obtain new UPI handles to transact in the securities market?

No, the new UPI IDs are only for intermediaries to obtain and investors can continue to use their existing UPI IDs.

Whom to approach if my transaction/ payment fails with the new UPI ID?

The secure validated UPI ID of intermediaries will use the same banking channel as the earlier generic UPI handles. In case of any technical difficulty, investors are requested to approach their respective bank.