Security market Regulator SEBI said on Wednesday that it has made a new UPI payment system compulsory for all registered intermediaries who collected money from investors to improve the security of financial transactions in the security market. This major decision of SEBI will provide tremendous facilities to people investing in the stock market and will reduce fraud cases. Registered intermediaries include share broker, merchant banker, deployment, investment consultant and portfolio manager. These intermediaries act as a link between investors and different units in financial markets.
When will the new rule apply
Tuhin Kant Pandey, head of the Securities and Exchange Board of India (SEBI), said that this Integrated Payment System (UPI) payment system will be implemented from October 1, 2025. In recent years, many non-orderly institutions have misled investors through fraud. Keeping these in mind, SEBI has taken this step. In order to avoid the problem of fake identity usage and increase the confidence of investors, the market regulator has made a new UPI address structure compulsory for all registered middlemen collecting money from investors.
How to benefit common investors
Tuhin Kant Pandey said, “This new system is ready to significantly improve the safety and access of financial transactions in the security market by providing verified and safe payment facility.” The market regulator is developing a new potential called ‘Sebi check’ to strengthen investors. These new instruments will enable the QR code scan or by entering UPI ID and confirming bank details of registered intermediary account number and IFSC code to verify the authenticity of UPI identity. SEBI issued a counseling paper in this regard in January. This arrangement has been made keeping in mind the suggestions on it.
With PTI inputs
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