SEBI Introduces New UPI Rules to Prevent Fraud in the Stock Market

The Securities and Exchange Board of India (SEBI) has introduced a new rule to make online money transactions in the stock market safer. From now on, all financial service providers like brokers, mutual funds, portfolio managers, and investment advisers must use a verified UPI ID that ends with “@valid”. These UPI IDs will also show a green thumbs-up icon, so investors can easily recognize trusted payment handles.

This change is meant to protect investors from fraud and fake accounts. Only SEBI-approved intermediaries will get these “@valid” UPI IDs, and banks will issue them only after confirming the intermediary’s details on SEBI’s official portal.

“SEBI Check” Tool: A New Way to Verify Before You Pay

To help investors feel more confident, SEBI is also launching a tool called “SEBI Check”. This is an online utility where investors can:

• Check if a UPI ID is real
• Scan QR codes safely
• Verify bank account details and IFSC codes of financial service providers

Before sending money, investors can use this tool to make sure their payment is going to a genuine SEBI-registered company — and not a scammer.

When Will This Start?

• The new system will start from 1 October 2025.
• Around 8,000 to 9,000 intermediaries will be covered under this rule.
• There will be a transition period until December 2025, during which old UPI handles will still work.
• After that, only verified “@valid” UPI IDs will be allowed for stock market-related payments.
• The daily UPI limit of ₹5 lakh for capital market transactions will stay the same.

Why This is Important

This step will make UPI payments in the stock market much safer. Here’s how:

• Investors will clearly know which UPI ID is safe to use.
• Payments will be made only to verified and traceable intermediaries.
• It will reduce fraud, fake accounts, and impersonation in financial transactions.

This move also supports a larger effort by NPCI (National Payments Corporation of India), which from 30 June 2025, will require UPI apps to show the name of the person receiving the money. That’s another way to protect users from scams.

What This Means for You

• If you’re an investor, always check for the “@valid” tag and green thumbs-up before making a UPI payment to a broker or mutual fund.
• Use the SEBI Check tool to confirm if you’re sending money to the right place.
• After December 2025, don’t trust or use any UPI ID without “@valid” for capital market transactions.

SEBI is taking a big step to improve safety in the stock market by making UPI payments more secure. With verified UPI IDs, a new checking tool, and clear rules, investors can now trade with more confidence — knowing their money is going to the right place.