In a major step towards enhancing digital payment security in India’s capital markets, the Securities and Exchange Board of India (SEBI) has launched two new initiatives—Validated UPI Handles and SEBI Check—to protect investors from fraudulent transactions and unauthorized fund transfers. The twin measures, announced on October 2, 2025, aim to bring greater transparency and trust to the rapidly growing UPI-based investment ecosystem.
With retail participation in IPOs, mutual funds, and online trading platforms surging, SEBI’s latest move is designed to ensure that investors only transfer funds to verified UPI handles linked to registered intermediaries. The regulator has also rolled out a public-facing tool called SEBI Check, which allows users to instantly verify the authenticity of UPI IDs, broker credentials, and payment links before initiating transactions.
SEBI’s Digital Payment Security Framework – Key Features
| Initiative | Description | Benefit to Investors |
|---|---|---|
| Validated UPI Handles | SEBI-verified UPI IDs linked to registered entities | Prevents fund diversion and impersonation |
| SEBI Check Tool | Online portal to verify UPI handles, broker codes, URLs | Real-time fraud prevention |
| QR Code Authentication | Dynamic QR codes for IPO and MF payments | Reduces risk of phishing and spoofing |
| Integration with NPCI | Linked with UPI ecosystem for seamless validation | Ensures backend compliance |
| Public Disclosure | List of validated handles published on SEBI website | Enhances transparency and accountability |
SEBI Chairperson Madhabi Puri Buch stated that the regulator is committed to building a secure and inclusive digital infrastructure for investors. “With UPI becoming the preferred mode of payment for retail investors, it is imperative that we eliminate vulnerabilities and empower users with verification tools. SEBI Check is a step in that direction,” she said.
The Validated UPI Handle system will be mandatory for all SEBI-registered intermediaries including brokers, registrars, mutual fund houses, and payment aggregators. Entities will be required to submit their UPI handles for validation and display only SEBI-approved IDs in public communications, IPO forms, and mobile apps.
Investor Risk Landscape – Why SEBI’s Move Matters
| Risk Type | Description | SEBI’s Mitigation Strategy |
|---|---|---|
| Fake UPI Handles | Fraudsters impersonating brokers or RTA firms | Validation and public listing |
| Phishing Links | Malicious URLs in SMS or email campaigns | SEBI Check verification tool |
| QR Code Spoofing | Static QR codes reused for multiple scams | Dynamic QR code authentication |
| Unregistered Entities | Fly-by-night operators collecting investor funds | Mandatory registration and disclosure |
| Payment Redirection | Funds diverted to personal accounts | Backend integration with NPCI |
The SEBI Check portal is now live and accessible to all investors. Users can enter a UPI ID, broker code, or payment link to verify its authenticity. The portal also flags suspicious handles and provides guidance on reporting fraud. SEBI has partnered with NPCI and major payment apps to integrate the tool into mobile interfaces, making verification seamless and accessible.
Industry stakeholders have welcomed the move, calling it a timely intervention to protect retail investors. The Association of Mutual Funds in India (AMFI) and the Bombay Stock Exchange (BSE) have issued circulars urging members to comply with the new guidelines and educate clients about SEBI Check.
SEBI Check – Portal Functionality and Use Cases
| Feature | Description | Use Case |
|---|---|---|
| UPI Handle Verification | Checks if UPI ID is registered and SEBI-validated | Before making IPO or MF payments |
| Broker Code Lookup | Verifies SEBI registration and compliance status | Before opening trading accounts |
| Payment Link Validation | Flags suspicious or unregistered URLs | Before clicking on SMS/email links |
| QR Code Scan | Verifies dynamic QR codes for secure payments | During mobile app transactions |
| Fraud Reporting | Allows users to report suspicious handles | Community-driven vigilance |
Social media platforms have seen a surge in discussions around SEBI’s new tools, with hashtags like #SEBICheck, #ValidatedUPI, and #InvestorSecurity trending across investor forums and fintech communities.
Public Sentiment – Social Media Buzz on SEBI’s Payment Security Push
| Platform | Engagement Level | Sentiment (%) | Top Hashtags |
|---|---|---|---|
| Twitter/X | 1.3M mentions | 82% supportive | #SEBICheck #ValidatedUPI #SecureInvesting |
| 1.1M interactions | 78% informative | #InvestorSecurity #SEBIPaymentSafety | |
| 950K views | 85% strategic | #FintechCompliance #SEBIInitiatives | |
| YouTube | 870K views | 80% educational | #SEBIExplained #UPISafety |
SEBI has also announced that it will conduct quarterly audits of validated UPI handles and penalize entities found using unverified IDs. Repeat violations may lead to suspension of registration and public blacklisting.
In conclusion, SEBI’s launch of Validated UPI Handles and SEBI Check marks a significant milestone in India’s journey towards secure, transparent, and investor-friendly digital finance. As retail participation continues to grow, these tools will play a critical role in safeguarding trust and preventing financial fraud.
Disclaimer: This article is based on publicly available regulatory announcements, industry circulars, and expert commentary. It does not constitute financial advice or confirmation of any regulatory action. All quotes are attributed to public figures and institutions as per coverage. Readers are advised to follow official SEBI notifications and consult certified financial professionals for verified guidance.
