SEBI/HO/DEPA -II/DEPA -II_SRG/P/CIR/2025/86

1 · Objective

1 · 1.Keeping in view the significant advancements in payment systems and with an objective to further enhance accessibility and safety in the securities market, it has been decided to put in place a structured Unified Payment Interface ('UPI') address mechanism for SEBI -registered investor-facing intermediaries ('intermediaries') to collect funds from their investors. This mechanism shall provide investors with the option to transfer funds directly to the requisite bank accounts of intermediaries that have been validated with SEBI. The transfer of funds through this mechanism will assure investors that their payments are being made to the verified and registered market intermediaries.

1 · 2.This initiative is being operationalized pursuant to public consultation and extensive deliberations with relevant stakeholders , including the National Payments Corporation of India (NPCI) and the SCSBs. The operational procedure for implementing this structured UPI address framework by intermediaries is detailed in the subsequent sections of this circular. Additionally, a flowchart outlining the end-to-end process, along with key decision points related to the allocation and implementation of structured UPI IDs, is provided at Annexure A .

1 · 3.While the use of this structured UPI mechanism by investors shall remain optional, it is mandatory for intermediaries to obtain and make available this structured UPI address to their investors. Additionally, intermediaries are advised and encouraged to actively promote and facilitate the adoption of this mechanism among their investors.

2 · Structure of the Dedicated UPI Address

2 · 1.A UPI address (UPI ID) is typically made up of a Username and a handle, separated by an "@" symbol. In this mechanism, Username will be an alphanumeric ID that will be generated for the user while the handle used will be a unique identifier linked to the bank of the registered intermediaries. The same has been illustrated below with examples:

2 · 2.For the payments made to registered market intermediaries, through the above UPI handle , a " thumbs -up inside a green triangle " icon, as depicted below , shall be available .

3 · Framework for Allocation and Use of @valid UPI Handles

3 · 1.UPI IDs with the handle @valid shall be exclusively designated for payment collection by intermediaries registered with SEBI under merchant category code 6211. The usage of these UPI handles for any activity other than the intended payment collection shall not be permitted. The detailed operational guidelines regarding the issuance and use of such handles shall be communicated by NPCI through appropriate channels.

3 · 2.The self -certified syndicate banks shall initiate request to NPCI for the issuance of new UPI handles in accordance with the prevailing handle issuance policy at NPCI. Intermediaries will be able to use their existing bank accounts to obtain the UPI IDs from the syndicate banks and opening of new bank accounts is not necessary . Further, only the self-certified syndicate banks as mentioned in Annexure C will be allocated "@valid " handles by NPCI.

4 · Transaction Limits

4 · 1.UPI, being a retail product, has certain transaction limits. Each app and bank impose its own limits; however, upper limits are set by NPCI. At present, this limit for capital market transactions is in the range of ₹2 lakhs – ₹5 lakhs per day .

4 · 2.Based on our analysis and available limits on transaction amount through UPI, the upper limit of up to ₹5 lakhs per day for capital market transactions (done through UPI) shall be available , subject to periodic review and further evaluation as necessary.

5 · Mechanism to Verify UPI IDs and Bank Account Details of Intermediaries

5 · 1.In order to provide an additional layer of security and help investors verify the authenticity of an entity before proceeding with any financial transaction, SEBI is in the process of developing a functionality named " SEBI Check".

5 · 2.This functionality will allow investors to verify the authenticity of UPI IDs either by scanning a QR code or by entering the UPI ID manually .

5 · 3.This tool will also include a feature to confirm the bank details such as bank account number and Indian Financial System Code (IFSC) of an intermediary.

6 · Responsibilities of Intermediaries, Self-Certified Syndicate Banks, MIIs and RTAs

6 · 1.Investor Facing Intermediaries

6 · 1.1. Ensure that their mobile number and email address are updated in the SI Portal. However, an intermediary is free to have multiple business accounts, and each account can have its own unique UPI ID .

6 · 1.2. The intermediaries need to obtain new UPI IDs from the banks and they will be able to use the old handles in parallel for the duration as specified in Section 6, post which the old handles have to be discontinued .

6 · 1.3. The existing mode of fund transfer for the ongoing Mutual Funds SIPs will continue to remain in force to avoid any disruption. However, new SIPs and renewal or extension of existing SIPs must be done using the new UPI IDs only.

6 · 1.4. Create investor awareness about new payment handles and " SEBI Check " functionality through modes like SMS, e-mail communications , social media posts and audio-visual messages. These should include clear and prominent displays on websites, aimed at empowering investors with detailed information about the presence of unique and secured UPI handle for payments to intermediaries . A few examples in this regard have been placed at Annexure E .

6 · 1.5. Create awareness and educational content for investors by placing relevant FAQs on the respective websites. A few examples in this regard have been placed at Annexure F .

6 · 2.Self -Certified Syndicate Banks

6 · 2.1. Obtain API access which will function as per the details provided, and to issue the UPI ID only after verification using the utility as shown in Annexure D .

6 · 2.2. Do proper due diligence while issuing the UPI IDs as per the procedure described in Section 3 .

6 · 3.MIIs and RTAs

6 · 3.1. MIIs are required to make necessary changes at their end to enable intermediaries to access SI Portal through them.

6 · 3.2. Create investor awareness about new payment handles and " SEBI Check" functionality through modes like SMS, e-mail communications, social media posts and audio-visual messages. These should include clear and prominent displays on websites, aimed at empowering investors with detailed information about the presence of unique and secured UPI handle for payments to intermediaries. A few examples in this regard have been placed at Annexure E .

6 · 3.3. Create awareness and educational content for investors by placing relevant FAQs on the respective websites. A few examples in this regard have been placed at Annexure F .

7 · Activity-wise Timelines

1 · Investor Facing Intermediaries