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
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Structured UPI Address Format
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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.
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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.
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Transaction Limits
- UPI payments for capital market transactions are capped at ₹5 lakh per day, aligning with NPCI’s retail limits.
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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
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Reduced Fraud Risk: Payments are routed only to SEBI-verified intermediaries.
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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.
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!
SEBI introduced these exclusive UPI IDs to prevent fraud by ensuring investors only pay SEBI-registered intermediaries. The "@valid" handle acts as a verified tag, reducing risks of payments to fake or unauthorized entities.
All SEBI-registered intermediaries (e.g., brokers, mutual funds, depositories) must obtain these IDs. Investors can continue using their existing UPI IDs but must use intermediaries’ new "@valid" handles for payments.
The format is: Username (e.g., abc.brk for brokers) + @valid + bank name (e.g., @validhdfc). Example: abc.brk@validhdfc.
This visual trust indicator appears during transactions to confirm the recipient is SEBI-verified. If missing, the payment could be risky.
Yes. The daily limit for capital market transactions via UPI is ₹5 lakh, as per NPCI’s retail payment rules.
No. After 180 days from the circular date (June 11, 2025), intermediaries must stop accepting payments via old UPI IDs (except for existing SIPs in mutual funds).
Use SEBI Check, a tool to: 1) Scan the intermediary’s QR code (with the thumbs-up icon). 2) Manually enter the UPI ID to validate it.
Payments to non-verified IDs carry higher fraud risks. SEBI advises investors to always check for the "@valid" handle and thumbs-up icon.
No. They can link their existing bank accounts to the new UPI IDs through Self-Certified Syndicate Banks (listed in SEBI’s Annexure C).
Intermediaries: Must adopt new UPI IDs by T + 105 days (around September 2025). Full implementation: Starts October 1, 2025.
