SEBI Launches Valid UPI Handle For Exchanges, Brokers To Combat Fraud
The intermediaries will request valid UPI IDs from their banks using the SEBI Intermediary Portal.
The Securities and Exchange Board of India launched on Wednesday an exclusive valid UPI handle for SEBI intermediaries, including brokers, exchanges and depositories, to promote a safe and transparent fee-payment system.
In a move aimed at addressing issues like impersonation and claims of providing unrealistic returns by fraudulent entities, the regulator has given the investors a way to check the authenticity of UPI IDs and bank accounts of SEBI-registered intermediaries.
The investors will be able to do this through a functional system called SEBI Check that is being developed, according to a presentation at a press conference of SEBI in Mumbai.
SEBI will issue a circular to initiate the process and the National Payments Corp. will communicate with banks and allocate UPI handles to intermediaries.
Banks will make the required system changes and SEBI will notify intermediaries for necessary approvals.
The intermediaries will request valid UPI IDs from their banks using the SEBI Intermediary Portal. Following this, the banks will confirm the request on the SEBI Intermediary Portal and allocate the handle to the intermediary in their system.
The validated UPI address is going to consist of a username and an exclusive "@valid" handle will be added to it. Additionally, a visual verification to identify a safe transaction between the investor and the intermediary will also be shown.
This new system will be available to users from Oct 1.
