Sebi Unveils Upi Verification Tool To Curb Cyber Fraud, Rollout From October 1

In a awesome measurement towards safeguarding unit investors against cyber fraud, nan Securities and Exchange Board of India (SEBI) connected Tuesday announced nan motorboat of a caller tool, SEBI Check, to verify nan authenticity of UPI (Unified Payments Interface) addresses utilized successful securities marketplace transactions.

The upcoming system, scheduled for motorboat connected October 1, 2025, will let investors to authenticate nan UPI handles of SEBI-registered intermediaries anterior to initiating transfers, guaranteeing that payments are directed solely to validated entities.

This protocol will beryllium applicable to each SEBI-registered entities engaged successful fundraising activities. 

SEBI Chairman Tuhin Kanta Pandey said nan instrumentality will thief users corroborate whether a UPI ID genuinely belongs to a registered entity specified arsenic a bank, broker, aliases different authorised intermediaries. “We are introducing a strategy wrong nan UPI strategy to cheque whether aliases not a UPI reside is genuine, for illustration that of a bank, broker, etc. This would beryllium very handy. It will beryllium implemented from 1st October,” Pandey said during an charismatic announcement.

The move comes amid rising concerns astir cyber fraud successful integer financial transactions, peculiarly arsenic UPI-based payments person seen a surge successful usage among unit investors.

“There is simply a batch of nationalist interest regarding cyber fraud. We person to find systemic solutions to it. We person 130 cardinal unsocial investors now, and we request a strategy successful nan securities marketplace wherever they put done a strategy wherever they cognize they are investing astatine nan correct place,” Pandey added.

Investors moving pinch marketplace intermediaries, specified arsenic finance advisers, investigation analysts, and brokers, must move to nan caller UPI verification strategy by October 1. This modulation is expected to see a wide scope of entities, pinch astir 9,000 SEBI-registered intermediaries group to beryllium affected by nan caller system.

Upon implementation, intermediaries will request to petition UPI handles done SEBI's intermediary portal, which will beryllium verified and allocated by banks successful their systems.

The verification characteristic is expected to go an basal information furniture successful UPI-driven transactions for Initial Public Offerings (IPOs), communal funds, and different finance platforms, ensuring costs are not misrouted to fraudulent accounts.

With SEBI aiming to heighten spot and transparency successful India’s superior markets, nan preamble of this UPI validation instrumentality aligns pinch its broader push for investor protection and integer infrastructure upgrades. The October 1 implementation day gives marketplace participants and exertion partners clip to merge and trial nan caller strategy earlier it goes live.

Industry experts judge nan characteristic could importantly trim phishing attempts and unauthorised money transfers successful nan securities ecosystem. It is besides expected to amended personification assurance successful UPI-based transactions, which person progressively go nan preferred mode of costs among Indian investors.

This inaugural follows SEBI’s ongoing efforts to fortify investor safeguards amid increasing information successful banal markets and communal costs done integer platforms.

Published on: Jun 11, 2025 5:02 PM IST