Updated 19:33 IST, February 2nd 2025
Sebi To Develop Safe UPI Payment Mechanism For Registered Market Intermediaries: All You Need To Know
Sebi had also floated a consultation paper on the proposals on Friday and has sought public comments on them by February 21.

Capital markets regulator Sebi has been thinking about coming out with a new mechanism to ensure secure and efficient payments in the securities market through Unified Payments Interface (UPI) in order to distinguish legitimate financial intermediaries from fraudsters.
Under this mechanism, Sebi has suggested creating a unique UPI address for registered market intermediaries, making it easier for investors to confirm that they are paying registered entities only.
The UPI payment limit that has been proposed for capital market transactions is set to Rs 5 lakh per day, which is higher than the current Rs 2 lakh limit. This will also be evaluated periodically in consultation with National Payments Corporation of India (NPCI).
Sebi had also floated a consultation paper on the proposals on Friday and has sought public comments on them by February 21.
Additionally, Sebi has also enabled UPI as a mode of payment in the market, since 2019.
But Why Is It Important To Be A Registered Entity?
Since there have been growing concerns with unregistered entities misleading investors and collecting money fraudulently, it is important to have registered entities.
Sebi has proposed creating a unique alphanumeric UPI ID for each registered intermediary, to address this issue.
"This unique UPI address will help investors ensure that their payments are reaching only to registered intermediaries. As a corollary, this would also help investors identify, isolate and avoid unregistered entities, who will not have access to this unique UPI handle," Sebi said.
Additionally, a "thumbs-up" icon inside a green triangle will appear while making payments to verified intermediaries. In case the icon is missing, investors will be warned about potential risks of paying unauthorised entities.
What Will This Cost?
Implementing this system will cost low as the process involves collaboration between Sebi, NPCI, banks, and registered intermediaries.
According to reports, this initiative is currently being discussed with various stakeholders, including the NPCI.
Madhabi Puri Buch, the chairperson of Sebi, in an event organised by ICAI explained the "Pay Right" initiative, on Friday.
Through this initiative, investors can verify the authenticity of the UPI ID they are transferring money to, using robust KYC (Know Your Customer) due diligence. This measure can combat the growing threat of digital fraud, and ensure that investors can confidently confirm they are making payments to legitimate recipients.
Buch also noted the importance of marrying technology with trust, saying that this new step would help distinguish legitimate financial intermediaries from fraudsters and reinforce investor confidence in the digital ecosystem.
(With PTI inputs)
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Published 19:33 IST, February 2nd 2025