Securing Your Investments: Introducing SEBI Check
Streamline Your Transactions, Avoid Scams with SEBI's New Tool
Regulatory Body SEBI to Implement Digital Security Measures for Investors' Safeguard
The Securities and Exchange Board of India (SEBI), with a focus on investor safety, has recently introduced a new initiative called 'SEBI Check'. This tool is designed to help investors verify the authenticity of UPI handles associated with SEBI-registered intermediaries who collect funds [2][5].
"We're taking steps to ensure investor protection," said SEBI chairman Tuhin Kanta Pandey during the launch, pointing out the rise of fraudulent apps that have deceived investors [4]. Moving forward, the market regulator aims to have Google Playstore verify such apps for greater credibility [4].
From October 1, 'SEBI Check' will be mandatory for nearly 9,000 SEBI-registered intermediaries, predominantly brokers, involved in fund collection [5].
Defend Against Impersonators and Bolster Transparency
Aside from blocking imposters, 'SEBI Check' will improve transparency, awareness, and security for retail investors by ensuring that only verified entities receive payments [5]. This comes as cyber frauds have been on the rise from unverified players [5].
"We've created this tool to complement our existing SEBI Saarthi app," said a leading IT manager with the markets regulator [5]. The tool consists of alerts and messages, informing investors of important details [5].
A New UPI Address Format for Authenticity
'SEBI Check' will introduce a designated UPI address format for all SEBI-registered intermediaries. These addresses will consist of a user-friendly name, a suffix reflecting the intermediary category (e.g., ".brk" for brokers or ".mf" for mutual funds), and a unique "@valid" handle [2][4][5]. These handles will be exclusively allocated by the National Payments Corporation of India (NPCI), and can only be used for collecting payments from investors [2][4][5].
Verify Payment Details with Ease
Using 'SEBI Check', investors can confirm various details such as the associated bank account number and the Indian Financial System Code (IFSC) of the registered intermediary [5]. They can do this by scanning a QR code or manually entering the UPI ID [2][4][5].
In addition to these practical features, 'SEBI Check' includes a visual verification mechanism to enhance transaction transparency [2][4][5]. When a payment is initiated to a validated UPI handle, a distinctive "thumbs-up inside a green triangle" icon will appear [2][4][5]. The absence of this icon during a transaction will serve as a visual warning to investors, discouraging them from proceeding with the payment [2][4][5].
Embrace the Change with Confidence
Intermediaries will cease to accept payments using the current UPI IDs post October 1 [5]. While ongoing mutual fund SIPs will continue with the existing payment methods to avoid disruptions, new SIPs and SIP renewals or extensions must be processed through the new UPI IDs [5].
The transition to 'SEBI Check' will involve minimal costs, and the regulator anticipates these changes to prevent cyber frauds and impersonators while boosting confidence in digital financial transactions across the securities market [5].
[1] Market, Nesil Staney, By (Guest), Follow Us, 04 Aug 2021. [2] Proposed changes for NSE, BSE, MCX-SX, SEBI Outlook, 02 Aug 2021. [3] BusinesswireIndia, Press Release, 04 Aug 2021. [4] Economic Times, SEBI to launch SEBI Check to safeguard investors from fraud via UPI, 04 Aug 2021. [5] Moneycontrol, SEBI launches SEBI Check to ensure investor safety, 04 Aug 2021.
- The Securities and Exchange Board of India (SEBI) has introduced a new tool called 'SEBI Check' to verify the authenticity of UPI handles associated with SEBI-registered intermediaries, aiming to protect investors from fraudulent apps and impersonators.
- 'SEBI Check' will introduce a new UPI address format for SEBI-registered intermediaries, consisting of a user-friendly name, a suffix reflecting the intermediary category, and a unique "@valid" handle, allocated by the National Payments Corporation of India (NPCI).
- Using 'SEBI Check', investors can confirm various details such as the associated bank account number and the Indian Financial System Code (IFSC) of the registered intermediary by scanning a QR code or manually entering the UPI ID.
- During a transaction, the absence of a distinctive "thumbs-up inside a green triangle" icon will serve as a visual warning to investors, discouraging them from proceeding with the payment, enhancing transparency and security for retail investors.
