Zerodha co-founder and CEO Nithin Kamath has raised alarm over a sharp rise in broker impersonation scams, urging investors to stay vigilant as the Securities and Exchange Board of India (SEBI) introduces a new UPI security framework to curb fraud in the capital markets.
“Scammers Are Impersonating Brokers” – Kamath Warns
Taking to X (formerly Twitter), Kamath said the number of fraud cases involving scammers posing as brokers and soliciting payments to random UPI accounts has “skyrocketed” in recent months.
“All legitimate fund transfers will now only go to verified UPI handles like brokername@validbank,” Kamath wrote, endorsing SEBI’s move.
SEBI’s New UPI Security Feature: What Investors Should Know
Effective October 1, 2025, SEBI has mandated that all registered intermediaries—including brokers, mutual funds, and portfolio managers—must use standardized, verified UPI IDs.
- Format:
entityname.category@validbank(e.g., abc.brk@validhdfc) - Verified handles will display a “thumbs-up inside a green triangle” symbol
- A new tool, SEBI Check, will allow users to verify UPI IDs or scan QR codes before making payments
Zerodha to Implement Feature Soon
Kamath confirmed that Zerodha will adopt the new UPI structure shortly, calling it a “significant step toward reducing fraud incidents”.
Why This Matters
The move comes amid growing concerns over cyber fraud in online investing, especially as retail participation surges. SEBI Chairman Tuhin Kanta Pandey said the new system will “significantly improve the safety and accessibility of financial transactions” in the securities market.
