SEBI UPI Payments: Secure D-Street Investing
Secure your investments: SEBI introduces a groundbreaking UPI payment system designed to significantly enhance investor security. Starting October 1, this innovative system streamlines transactions with brokers and intermediaries, directly combating fraudulent activities. this strategic move mandates intermediaries to offer a secure UPI payment option, ensuring funds flow only to verified, registered participants. The rollout follows extensive consultations and aims to make digital payments simpler and safer for investors. Utilizing standardized and validated UPI IDs, the system offers a robust defense against illicit financial operations. News Directory 3 is covering the latest for improved market accessibility and safety. discover what’s next for digital transactions in the securities market.
SEBI Enhances Investor Security with UPI Payment System
Updated June 11, 2025
The Securities and Exchange Board of India (SEBI) has launched a new initiative to bolster the security of UPI payments for investors dealing with stockbrokers and other intermediaries. This system is designed to protect investors against fraud by ensuring funds are transferred only to registered intermediaries.
This move by the market regulator introduces a structured UPI address system for investor-facing intermediaries to collect funds, aligning with advancements in payment systems to improve market accessibility and safety. The standardized, validated UPI IDs will be available to investors beginning Oct. 1.
The mechanism allows investors to make digital payments directly into the bank accounts of intermediaries already verified by SEBI. This ensures payments are routed only to legitimate,registered market participants. The initiative follows public consultation and discussions with stakeholders, including the National Payments corporation of India (NPCI).
While use of the new UPI payment system is optional for investors, SEBI mandates that intermediaries provide the UPI option to their clients and actively promote its adoption.
What’s next
SEBI expects widespread adoption of the new UPI payment system to enhance the security and efficiency of transactions in the securities market.