How SEBI's '@valid' UPI handles and 'SEBI Check' help prevent investment fraud: A guide for investors

In an era of rising digital transactions, investor security has become more critical than ever. To tackle payment fraud and ensure that funds reach only verified market intermediaries, the Securities and Exchange Board of India (SEBI) has introduced two powerful tools. Validated UPI Handles and ‘SEBI Check’ initiatives empower investors to easily identify legitimate recipients and verify payment credentials, bringing a new layer of trust and transparency to digital payments in the capital markets.

Developed in collaboration with the National Payments Corporation of India (NPCI), these tools offer a safer, more reliable payment ecosystem by ensuring that funds are transferred only to SEBI-registered entities.

What are validated UPI handles?

.brk@valid for brokers

.mf@valid for mutual funds

The move will help investors easily identify legitimate intermediaries.

The feature, available as an additional payment option for investors, will coexist with existing modes like NEFT, RTGS and IMPS, giving investors flexibility in choosing their preferred transaction channel.

What is ‘SEBI Check’?

‘SEBI Check’ is digital verification tool launched by SEBI.

You can enter either the Validated UPI ID or the bank account number and IFSC code of the intermediary.

"These initiatives provide assured security, prevent fraud and enhance transparency in investor payments," Sebi said.

⦁ Payments show a distinct "thumbs-up inside a green triangle" icon for confirmation.

⦁ Special QR codes with the same icon help avoid scanning fake payment links.

⦁ Reduces the risk of falling prey to scam investment schemes or fake intermediaries.

⦁ Non-validated handles trigger alerts, warning investors of potential unregistered recipients.

• It provides an extra layer of security, allowing you to confirm that the payment credentials genuinely belong to the SEBI-registered entity before transferring funds.

⦁ Coexists with other payment options like NEFT, RTGS, and IMPS, offering more choice.

⦁ Seamlessly integrates with popular UPI apps and banking platforms.

These steps are critical to avoiding scams, protecting capital, and ensuring your investments go only to authorised and trustworthy intermediaries.