• Securities and Exchange Board of India (SEBI) said it has mandated a new UPI payment mechanism for all registered intermediaries, who collect funds from investors, to improve the safety and accessibility of financial transactions within the securities market.

• The Unified Payments Interface (UPI) payment mechanism will go live from October 1, 2025, SEBI chief Tuhin Kanta Pandey said on June 11. 

• In recent years, unregistered entities have increasingly misled investors by fraudulent activities.

• To address the issue of impersonation and enhance investor confidence, the regulator has mandated a new UPI address structure for all SEBI-registered intermediaries who collect funds from investors.

• This upcoming tool will enable investors to verify the authenticity of UPI IDs either by scanning a QR code or entering the UPI ID manually and confirming the bank details, such as the account number and India Financial System Code (IFSC) of a registered intermediary.

• To further empower investors, SEBI is developing a new functionality called “SEBI Check”.

What is SEBI?

• The Securities and Exchange Board of India (SEBI) was constituted as a non-statutory body on April 12, 1988 through a resolution of the government of India for dealing with all matters relating to the development and regulation of the securities market and investor protection and to advise the government on all these matters.

• SEBI was given statutory status and powers through an Ordinance promulgated on January 30, 1992. SEBI was established as a statutory body on February 21, 1992. The Ordinance was replaced by an Act of Parliament in April 1992.

• The Board has the same powers as are vested in a civil court under the Code of Civil Procedure, 1908, while trying a suit.

The main objectives of SEBI are:

i) To protect the interest of the investors.

ii) To regulate and promote development of securities markets in India. 

The main functions of SEBI include:

i) Registration, regulation and supervision of intermediaries operating in the securities market.

ii) Promoting and regulating self-regulatory organisations.

iii) Prohibiting fraudulent and unfair trade practices relating to securities markets.

iv) Calling from or furnishing to other authorities, whether in India or abroad, such information as may be necessary for the efficient discharge of its functions. The Board, for  the purpose of furnishing any information to any authority outside India, may enter into an arrangement or agreement or understanding with such authority with the prior approval of the central government.

Members of the Board

The Board consists of:

i) Chairperson

ii) Two members from the officials of the finance ministry.

iii) One member from the officials of the Reserve Bank of India.

iv) Five other members of whom at least three shall be whole-time members, to be appointed by the central government.

• The general superintendence, direction and management of the affairs of the Board shall vest in the Board of members, which may exercise all powers and do all acts and things which may be exercised or done by the Board.

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