SEBI’s new UPI handles, verification tools help investors avoid fraud

SEBI Check Tool: The Securities and Exchange Board of India (SEBI) has launched a new initiative to prevent online fraud and promote safe investing. SEBI has introduced two new features. Through the @valid UPI handle and the SEBI Check tool, SEBI is providing a secure payment option for investors in mutual funds, stocks, and other securities. This ensures that investors' funds only go to SEBI-approved entities and brokers, protecting them from online fraud.

With the help of the @valid UPI handle and the SEBI Check tool, SEBI is promoting secure payments.

Also Read: ICICI Prudential's new mutual fund , here you can invest with just 1,000.

What is the @valid UPI handle?

All brokers and mutual fund companies registered with SEBI will use a UPI handle ending with @valid, indicating that the broker or entity has been approved by SEBI. ".brk" will be used to identify brokers and ".mf" for entities.

Also Read: OnePlus Confirms OxygenOS 16 Launch: Major Android 16 Update Coming Next Week

Also, when making payments using the @valid UPI handle, a thumbs-up symbol will appear in a green triangle. This will indicate that your money is being transferred to a SEBI-registered broker or entity. For example, a broker's UPI ID would look like abc.brk@validsbi, and for a mutual fund, abc.mf@validsbi. However, SEBI has reported that more than 90 percent of brokers and mutual fund entities already use it.

SEBI Check Tool

Under the SEBI Check Tool, investors can check their broker's UPI ID before investing by visiting SEBI's Sarathi app or the SEBI website. This UPI ID uses the broker's @valid UPI ID or account number and IFSC code. SEBI stated that this step will help reduce fraud and ensure secure payments for investors.

Investors will benefit

This step by SEBI will benefit investors and help them avoid online fraud. Small investors will benefit the most. With the system becoming more transparent, identifying genuine brokers and mutual fund companies will become much easier. This will ensure investors' money reaches the right destination. Investors simply need to keep these factors in mind when investing.