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Market regulator Securities and Exchange Board of India (SEBI) on Wednesday rolled out a special initiative to help investors make UPI payments to stockbrokers and other intermediaries securely. This facility—aimed at protecting investors against fraudulent activities—has been designed specifically to ensure that money is transferred only to the intended and registered intermediaries, such as brokers. The development confirms a Zee Business exclusive report this week that such an initiative was on the cards.

The market regulator's decision, to put in place a structured UPI address mechanism for registered investor-facing intermediaries to collect funds from their investors, comes in light of significant advancements in payment systems and with an aim to enhance securities market accessibility and safety, according to an official release. 

The mechanism will provide investors with the option to make digital payments directly to the intermediaries' bank accounts already validated with SEBI.

Through this mechanism, investors' payments will go only to the verified and registered market intermediaries. 

The initiative has been put in place after thorough public  consultation  and detailed deliberations with relevant stakeholders including the National Payments Corporation of India (NPCI), an umbrella organisation for operating retail payments and settlement systems in the country. 

SEBI shared a flowchart outlining the end-to-end process involved in the rollout of the dedicated UPI handle mechanism.

Image source: SEBI 

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