Sebi upi authentication tool: To prevent increasing online fraud in the stock market, SEBI has announced to bring a new UPI verification tool. Now while doing transactions related to the stock market, investors will help find out whether they are paying the right place or not. SEBI chairperson Tuhin Kanta Pandey told a press conference in Mumbai, ‘There is a lot of concern about cyber fraud. We have to find a permanent solution. We have more than 13 million investors, and we need a system in the stock market where investors invest through a system where they know that they are investing the right place.
How will the new UPI system work?
Under this new system, the National Payments Corporation of India (NPCI) will work closely with banks. They will give a unique and verified UPI handle to registered companies with SEBI (eg broker, investment advisor). Banks will make necessary changes in their system to support this facility. The good thing is that investors will not need to make any changes. SEBI chief clarified, “The change will have to be done at the broker level, not investors.”
How long will the new rule be implemented?
SEBI has directed that whatever broker, investment advisor and research analyst investors will have to adopt this new system by October 1, 2025. About 9,000 registered brokers will come under this new structure. Once this system is started, he will apply for the UPI handle through his portal of SEBI. The bank will then examine these handles and approve them.
Pandey said, ‘We are starting a system within the UPI system to check whether the UPI address of bank, broker etc. is real or not. It will be very useful. It will be implemented from 1 October.
‘Sebi check’ tool to help investors
SEBI is also making a tool called ‘SEBI Czech’ to help SEBI investors. From this tool, users will be able to check the UPI ID of any middleman by scanning a QR code or manually by entering UPI ID. This tool will also show the details of the concerned bank such as account number and IFSC code. Pandey said, “This new and better way is to make the safety and access to financial transactions in the stock market significantly better, as it will provide a verified and safe payment channel.” This step of SEBI is an important part of the efforts to deal with cyber fraud and to increase the confidence of investors.
