By buld_online 
In a major step towards safeguarding retail investors against cyber fraud, the Securities and Exchange Board of India (SEBI) on Tuesday announced the launch of a new tool, SEBI Check, to verify the authenticity of UPI (Unified Payments Interface) addresses used in securities market transactions.
The upcoming system, scheduled for launch on October 1, 2025, will allow investors to authenticate the UPI handles of SEBI-registered intermediaries prior to initiating transfers, guaranteeing that payments are directed solely to validated entities.
This protocol will be applicable to all SEBI-registered entities engaged in fundraising activities.
SEBI Chairman Tuhin Kanta Pandey said the tool will help users confirm whether a UPI ID truly belongs to a registered entity such as a bank, broker, or other authorised intermediaries. “We are introducing a system within the UPI system to check whether or not a UPI address is genuine, like that of a bank, broker, etc. This would be very handy. It will be implemented from 1st October,” Pandey said during an official announcement.
The move comes amid rising concerns about cyber fraud in digital financial transactions, particularly as UPI-based payments have seen a surge in usage among retail investors.
“There is a lot of public concern regarding cyber fraud. We have to find systemic solutions to it. We have 130 million unique investors now, and we need a system in the securities market where they invest through a system where they know they are investing at the right place,” Pandey added.
Investors working with market intermediaries, such as investment advisers, research analysts, and brokers, must switch to the new UPI verification system by October 1. This transition is expected to include a wide range of entities, with approximately 9,000 SEBI-registered intermediaries set to be affected by the new system.
Upon implementation, intermediaries will need to request UPI handles through SEBI’s intermediary portal, which will be verified and allocated by banks in their systems.
The verification feature is expected to become an essential safety layer in UPI-driven transactions for Initial Public Offerings (IPOs), mutual funds, and other investment platforms, ensuring funds are not misrouted to fraudulent accounts.
With SEBI aiming to enhance trust and transparency in India’s capital markets, the introduction of this UPI validation tool aligns with its broader push for investor protection and digital infrastructure upgrades. The October 1 implementation date gives market participants and technology partners time to integrate and test the new system before it goes live.
Industry experts believe the feature could significantly reduce phishing attempts and unauthorised fund transfers in the securities ecosystem. It is also expected to improve user confidence in UPI-based transactions, which have increasingly become the preferred mode of payment among Indian investors.
This initiative follows SEBI’s ongoing efforts to strengthen investor safeguards amid growing participation in stock markets and mutual funds through digital platforms.