Ensuring Secure UPI Payments in the Securities Market: SEBI’s Latest Proposal
Publisehed: 2025-02-03 09:15:37
SEBI is set to introduce a new mechanism to improve the security and efficiency of securities market payments through UPI.
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This strategic move is designed to help investors distinguish legitimate financial intermediaries from fraudsters, safeguarding their transactions in an increasingly digital landscape.
The Need for a Secure Payment System
Over the years, SEBI has observed a rising issue with unregistered entities misleading investors and fraudulently collecting money. As the popularity of digital transactions continues to grow, the risks associated with fraudulent payment channels have also escalated. SEBI’s new initiative seeks to address these concerns by fortifying the payment process and instilling greater investor confidence.
Key Features of the Proposed Mechanism
To achieve this goal, SEBI has proposed the creation of unique UPI addresses for registered market intermediaries. This measure will enable investors to verify that their payments are directed exclusively to authorized entities.
In its consultation paper, SEBI elaborated on the need for this initiative and invited public comments on the proposal by February 21. Since 2019, UPI has been a recognized mode of payment in the capital market, and this latest development aims to enhance its reliability.
Enhanced Payment Limits
Under the proposed guidelines, the UPI payment limit for capital market transactions will be increased from the current Rs 2 lakh per day to Rs 5 lakh per day. This limit will be periodically reviewed in collaboration with the National Payments Corporation of India (NPCI) to accommodate evolving market needs.
Unique UPI ID and Verification Icon
SEBI has suggested creating a distinct alphanumeric UPI ID for each registered intermediary. This unique identifier will make it easier for investors to confirm the authenticity of their payment recipients.
To further reinforce this verification process, a special thumbs-up icon inside a green triangle will be displayed when payments are made to verified intermediaries. If the icon is absent, it will serve as a warning for investors, indicating potential risks associated with unauthorized entities.
The successful implementation of this system will require close collaboration between SEBI, NPCI, banks, and registered intermediaries. By working together, these stakeholders can ensure that the payment infrastructure remains secure, efficient, and reliable.
SEBI’s proactive approach to safeguarding UPI payments in the securities market is a significant step toward protecting investors and maintaining market integrity. By introducing unique UPI IDs and verification icons, the regulator aims to minimize fraud and enhance transparency. Investors are encouraged to stay vigilant and leverage these new features to ensure safe and legitimate transactions in the capital market.