Adoption of Standardised Validated and Exclusive UPI IDs for Payment Collection by SEBI Registered Intermediaries from Investors
Summary
This circular mandates the adoption of standardized, validated UPI IDs for SEBI-registered intermediaries to collect funds from investors. It establishes a specific structure for these UPI addresses using unique usernames and '@valid' handles linked to self-certified syndicate banks. The document outlines transaction limits, verification mechanisms like 'SEBI Check', and the respective responsibilities of intermediaries and banks. Section 6.3 mandates Market Infrastructure Institutions (MIIs) and Registrar and Transfer Agents (RTAs) to facilitate portal access and conduct investor awareness campaigns regarding new UPI handles. Section 7 establishes a detailed timeline for implementation activities by MIIs, banks, and intermediaries, culminating in the discontinuation of old UPI IDs by T+180 Days. The circular specifies that standardized UPI IDs become effective from October 01, 2025, and is issued under Section 11(1) of the SEBI Act, 1992. This section provides Frequently Asked Questions detailing the mandatory adoption of validated UPI IDs by intermediaries and their operational requirements. It clarifies that investors are not required to obtain new handles but must use the speci
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While the use of this structured UPI mechanism by investors shall remain optional, it is mandatory for intermediaries to obtain and make available this structured UPI address to their investors.
A UPI address (UPI ID) is typically made up of a Username and a handle, separated by an “@” symbol. In this mechanism, Username will be an alphanumeric ID that will be generated for the user while the handle used will be a unique identifier linked to the bank of the registered intermediaries.
An intermediary will select a username that is readable and relatable to them as per their presence in the respective segments of the securities market, which will be followed by an abbreviation representing their intermediary segment.
To make it convenient for investors to identify, the UPI address of intermediaries shall use a unique and easily relatable handle “@valid”, combined with the name of the self-certified syndicate banks as mentioned in Annexure C. These handles will be allocated by NPCI.
For the payments made to registered market intermediaries, through the above UPI handle, a “thumbs-up inside a green triangle” icon, as depicted below, shall be available.
UPI IDs with the handle @valid shall be exclusively designated for payment collection by intermediaries registered with SEBI under merchant category code 6211. The usage of these UPI handles for any activity other than the intended payment collection shall not be permitted.
The self-certified syndicate banks shall initiate request to NPCI for the issuance of new UPI handles in accordance with the prevailing handle issuance policy at NPCI. Intermediaries will be able to use their existing bank accounts to obtain the UPI IDs from the syndicate banks and opening of new bank accounts is not necessary.
Based on our analysis and available limits on transaction amount through UPI, the upper limit of up to ₹5 lakhs per day for capital market transactions (done through UPI) shall be available, subject to periodic review and further evaluation as necessary.
In order to provide an additional layer of security and help investors verify the authenticity of an entity before proceeding with any financial transaction, SEBI is in the process of developing a functionality named “SEBI Check”.
This functionality will allow investors to verify the authenticity of UPI IDs either by scanning a QR code or by entering the UPI ID manually.
Ensure that their mobile number and email address are updated in the SI Portal.
The intermediaries need to obtain new UPI IDs from the banks and they will be able to use the old handles in parallel for the duration as specified in Section 6, post which the old handles have to be discontinued.
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Source: SecMarx — Adoption of Standardised Validated and Exclusive UPI IDs for Payment Collection by SEBI Registered Intermediaries from Investors. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.