News Breakthrough Confirm: SEBI initiates initiative to enable D-Street investors to safely pay intermediaries
The Securities and Exchange Commission (SEBI), the Indian market regulator, launched a special program on Wednesday to help investors safely pay stockbrokers and other intermediaries. The facility, designed to protect investors from fraudulent activities, is designed specifically to ensure that money is transferred only to expected and registered intermediaries such as brokers. The development confirmed this week’s exclusive report on Zee’s business, and the initiative is joining.
The decision of the market regulator is for the registered UPI address mechanism for investors to collect funds from their investors, given a significant advancement in the payment system and aims to improve access and security in the securities market, the official press release said.
According to SEBI, “standardized, proven and exclusive UPI ID” will provide investors with October 1.
What will a dedicated UPI handle do? How will it work?
The mechanism will provide investors with the option to make digital payments directly to intermediary bank accounts that have been verified by SEBI.
Through this mechanism, investors’ payments will be used only for verified and registered intermediaries.
The initiative was introduced after a thorough review of public consultation and relevant stakeholders, including the National Payment Corporation of India (NPCI), the umbrella organization in the country that operates retail and reconciliation systems.
For investors, the use of this mechanism will be optional, and intermediaries will provide investors with UPI addresses is mandatory.
SEBI has asked intermediaries to actively promote and promote the adoption of such mechanisms to investors.
Sebi launches structured UPI address | operating procedures
SEBI shares a flowchart outlining the end-to-end process involved in the rollout of a dedicated UPI handle mechanism.
Image source: Sebi
What will the UPI address of the SEBI registered intermediary agency look like? See example
The intermediary will select the “Readable and Related” username and select the abbreviation that represents its segment. For example, the intermediary may have the username “abc.brk” or “abc.mf” respectively, which are brokers and mutual funds.
Various intermediate types of suffixes
Their UPI address will contain unique and easy-to-relevant handles, such as “@valid”, which will be used in conjunction with the names of the self-certified group library mentioned below:
Check out the complete example of the handle
Here are two sample handles, one for registering a broker and one for registering an MF:
