SEBI Mandates UPI Payment System for Market Intermediaries from October 1

The Securities and Exchange Board of India (SEBI) has announced a major regulatory update, mandating the use of the Unified Payments Interface (UPI) for all registered market intermediaries who collect funds from investors. This new payment mechanism will be effective from 1st October 2025, and aims to strengthen investor protection and ensure greater financial transparency in the securities market.

Speaking at an event in Mumbai, SEBI Chairperson Tuhin Kanta Pandey stated that the move comes in response to a growing number of fraudulent cases involving unregistered entities posing as legitimate market participants. By enforcing a secure, verified UPI-based system, SEBI aims to curb such incidents and streamline financial transactions in the investment ecosystem.

Highlighting the benefits of the initiative, the SEBI chief said the new mechanism will offer investors a safe, efficient, and easily verifiable payment channel, minimizing risks associated with unauthorized fund collection.

In a further move to support investors, SEBI is also introducing a digital tool named ‘SEBI Check’. This feature will allow users to verify UPI IDs by either scanning a QR code or manually entering the UPI ID, enabling them to view authenticated bank account details linked to registered intermediaries.

These steps are part of SEBI’s broader commitment to promoting transparency, accountability, and trust in India’s capital markets.