Nithin kamath hails sebi’s upi security feature amid rising frauds: what it means for investors, how it works & more

Zerodha co-founder nithin kamath has advocated the latest upi security feature introduced by the seconds and exchange board of India (sebi) amid the rising number of investment scams Brokers.

In a post on the social media platform x, kamath wrote, “The number of fraud cases involving scammers impersonating brokers and asking for money to be transferred to random accounts have sky Protect Investors, Sebi has introduced a new upi security feature.

What is sebi’s validated upi security feature?

The market regulator is set to introduce a new UPI address structure for all sebi-regified entities that collect funds from investors. The latest feature, which will be effective from October 1, 2025 AIMS to Tackle Growing Concerns of Payment Fraud Among Among Investors, Especially in Online Investment Platforms, SEBI SAIDIC Platforms, SEBI SAID June 11, 2025.

How will validated upi work?

The latest Framework Includes a Mandatery and Structured UPI address for all intermediate, which consists of a username and a unique handle.

Username

The username is a readable name Cho the entity, Including a Mandatory Suffix that will help to identify the category of the intermediate. For example, brk for a stock broker or mf for a mutual fund.

Unique handle

The handle will consist of an exclusive identifier such as “@valid”, along with the bank. These “validated” handles will be allocated by the National Payments Corporation of India (NPCI) only for payment purposes for entities registered by sebi.

Visual verification

To facilitate the recording of valid transactions, investors will notice a distinct symbol, which will be a “thumbs-up inside a green triangle” icon, when they make a payment to a registrar Through this new handle.

Mandatory QR Code

Intermediaryies must also also create a qur code that cleaned displays this “thumbs-up” logo for the convenience of investors.

Sebi’s check tool

In addition to the UPI validity feature, the market will also also introduce sebi check, a tool for investors to verify the authority of UPI ids.

Investors can verify UPi Ids Eiter Through SCANNING A QR Code or by Entering the UPI ID manually. Following this, they will be required to confirm the bank details such as the bank account number and the Indian Financial System Code (Ifsc) of a registered intermediary.