The Securities and Exchange Board of India (Sebi) is set to come out with a new mechanism to ensure secure and efficient payments in the securities market through Unified Payments Interface (UPI).
File Photo: SEBI
The Securities and Exchange Board of India (Sebi) is set to come out with a new mechanism to ensure secure and efficient payments in the securities market through Unified Payments Interface (UPI).
The move is being taken in a bid to distinguish legitimate financial intermediaries from fraudsters.
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Under the proposed mechanism, SEBI has suggested creating a unique UPI address for registered market intermediaries, making it easier for investors to confirm that they are paying only registered entities.
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In this context, the market regulator floated a consultation paper on the proposals and sought public comments on them by February 21. Since 2019, Sebi has enabled UPI as a mode of payment in the market.
The proposed UPI payment limit for capital market transactions is set to Rs 5 lakh per day, higher than the current Rs 2 lakh limit. This will be evaluated periodically in consultation with National Payments Corporation of India (NPCI).
SEBI highlighted that there has been a growing issue with unregistered entities misleading investors and collecting money fraudulently.
To address this, Sebi has proposed creating a unique alphanumeric UPI ID for each registered intermediary.
“This unique UPI address will help investors ensure that their payments are reaching only to registered intermediaries. As a corollary, this would also help investors identify, isolate and avoid unregistered entities, who will not have access to this unique UPI handle,” it added.
With the new system into play, a special thumbs-up icon inside a green triangle will appear when payments are made to verified intermediaries.
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If the icon is missing, it will warn investors about potential risks of paying unauthorised entities.
The process involves collaboration between Sebi, NPCI, banks, and registered intermediaries
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