🔒 SEBI to Launch UPI Handle Verification Tool to Curb Fraud and Boost Investor Confidence
In a move to enhance investor protection and strengthen the integrity of the Indian capital markets, the Securities and Exchange Board of India (SEBI) is preparing to launch a new UPI handle verification tool.
The initiative is aimed at reducing the risk of fraudulent transactions during IPO applications, online trading, and other market-related fund transfers involving Unified Payments Interface (UPI).
🛡️ Why This Tool Matters: The UPI Fraud Challenge
Over the past few years, UPI has become a preferred payment mode in the stock market ecosystem—especially for IPO subscriptions via ASBA (Application Supported by Blocked Amount).
However, with rising usage came malicious practices:
Fake UPI handles mimicking real platforms
Redirection of funds to unauthorized accounts
Scams targeting retail investors during IPOs
SEBI's new tool is designed to verify the legitimacy of UPI handles before processing financial transactions, offering an extra layer of security.
🔧 How the UPI Handle Verification Tool Will Work
Investors will input their UPI ID during IPO or transaction processes
The system will cross-check the handle with authorized databases
If the handle is invalid or suspicious, the transaction will be flagged
The verification will be automated and real-time
SEBI will likely integrate this tool with RTAs (Registrar and Transfer Agents), stock exchanges, and banks for seamless authentication.
📈 Implications for Investors and Market Ecosystem
✅ Enhanced investor confidence
✅ Reduction in UPI-based scams
✅ Faster refund processing for invalid applications
✅ Increased transparency in IPO allotment processes
By tightening fintech regulations, SEBI is sending a clear message: Investor protection is non-negotiable.
❓ FAQs on SEBI’s UPI Handle Verification Tool
Q1: Why is SEBI launching this UPI verification tool?
To combat fraud and ensure only genuine UPI handles are used in IPOs and stock-related transactions.
Q2: Will I need to register again to use this tool?
No. The tool will likely work behind the scenes to verify UPI IDs you enter during IPO or trading processes.
Q3: Is this tool only for IPOs?
While IPOs are the primary focus, it may extend to other UPI-based financial interactions in capital markets.
Q4: When will the tool be launched?
SEBI has not provided an exact date, but it is expected to roll out in phases starting FY 2025–26.
Q5: What happens if my UPI ID is not verified?
Your transaction will be halted or flagged, and you may be asked to re-enter a valid handle or use an alternative method.
www.vizzve.com || www.vizzveservices.com
Follow us on social media: Facebook || Linkedin || Instagram