The Securities and Exchange Board of India (SEBI) has introduced a new system to protect investors from online fraud and promote safe investing.
Two features have been launched: the @valid UPI handle and the SEBI Check tool.
These will ensure that money invested in mutual funds, stocks, or other securities goes only to SEBI-authorized brokers and entities.
What is @valid UPI Handle?
All SEBI-registered brokers and mutual fund companies will now use a UPI handle ending with @valid.
“.brk” will be used for brokers.
“.mf” will be used for mutual fund companies.
When paying through this UPI handle, a green triangle with a thumbs-up symbol will appear, confirming that the payment is going to a SEBI-registered entity.
Examples:
Broker’s UPI ID → abc.brk@validsbi
Mutual Fund’s UPI ID → abc.mf@validsbi
Currently, more than 90% of brokers and mutual fund companies are already using this system.
SEBI Check Tool
The SEBI Check tool allows investors to verify a broker’s UPI ID before making payments.
Verification can be done through the SEBI Sarathi app or the SEBI website.
Investors can confirm details using the broker’s @valid UPI ID or their account number and IFSC code.
This step reduces the risk of fraud and ensures secure transactions for investors.
How Investors Benefit
This move is especially helpful for small investors, who are more vulnerable to online fraud. With the system becoming more transparent, it will be easier to identify genuine brokers and mutual fund companies.
Overall, this initiative ensures that investors’ money always reaches the right destination, making online investing safer and more reliable.
