How to avoid fraud using SEBI's verification tools

The Securities and Exchange Board of India ( SEBI) has rolled out two major initiatives aimed at strengthening payment security for investors. The “Validated UPI Handles” and “SEBI Check” tools are designed to ensure that payments to SEBI-registered intermediaries are verified, and routed through legitimate channels.

SEBI says that these measures were announced earlier this year through Press Release No. 31/2025 and Circular No. SEBI/HO/DEPA-II/DEPA-II_SRG/P/CIR/2025/86 dated June 11, 2025.

Validated UPI Handles
Under this new framework, UPI IDs of SEBI-registered investor-facing intermediaries will now include the exclusive “@valid” handle issued by the National Payments Corporation of India (NPCI). These handles will also carry category-specific suffixes to help investors easily identify legitimate entities, says SEBI in a statement.

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As of now, major brokerage firms accounting for more than 90% of investors along with all mutual funds, have already adopted the “@valid” UPI handle. This system has been introduced as an additional and more secure payment option, complementing existing modes such as NEFT, RTGS, and IMPS, as per the market regulator. Investors can continue using their preferred payment methods while benefiting from this added layer of verification.

Key features of the “@valid” handle, how it works
Exclusive Identifier: Each UPI ID will include a unique and valid identifier, “@valid”, along with the self-certified syndicate bank’s name and a category-specific suffix — for instance, .brk for brokers and .mf for mutual funds. Example: abc.brk@validhdfc or xyz.mf@validicici, as per the SEBI press release.

Visual Verification: SEBI says, A distinct “thumbs-up inside a green triangle” icon will appear during transactions made through a “@valid” handle, confirming authenticity. If the icon is missing, investors should treat it as a red flag and refrain from proceeding.

Distinctive QR Code: Each registered intermediary will have a specially designed QR code featuring the thumbs-up symbol at its centre, ensuring quick and error-free payments to verified entities. The presence of this QR code assures investors that payments are being made to SEBI-registered intermediaries, the market regulator said.

SEBI Check tool
SEBI has rolled out “SEBI Check”, a new functionality that allows investors to independently verify bank account details and UPI IDs of SEBI-registered intermediaries.

How to verify bank account details and UPI IDs
Using SEBI Check, investors can confirm the authenticity of a bank account by entering either the account number and the IFSC code or the @valid UPI ID. This can be done through the SEBI Check portal at https://siportal.sebi.gov.in/intermediary/sebi-check or via SEBI’s Saarthi app, as per the SEBI release.

SEBI has advised all investors to use SEBI Check before making any payment to ensure the funds are being transferred to legitimate, registered entities.

Core benefits of these initiatives
Here are core benefits of the above initiatives, as per the SEBI statement-

• Assured Security: Payments will be routed exclusively through verified SEBI-registered intermediaries, reducing risks of fraud and misdirection.
• Fraud Prevention: Investors can now instantly detect and avoid fraudulent activities when the exclusive “thumbs-up” visual cue is absent in UPI transactions.
• Transparency and Trust: A simple, reliable and transparent framework to empower investors to transact with confidence.