SEBI mandates use of Standardised UPI IDs

To enhance security and streamline transactions in the capital markets, the Securities and Exchange Board of India (SEBI) has mandated the use of standardized and verifiable UPI IDs for all UPI-based payments. This new rule requires that the UPI ID used for market transactions must be linked to the investor's own bank account, which is also mapped to their trading and demat accounts. The use of third-party or non-standardized UPI IDs will be prohibited. This measure is designed to prevent fraudulent activities, ensure that payments are traceable to the correct investor, and improve the overall efficiency of the payment and settlement process. The standardization will help in the easy identification and verification of investors, reducing risks for all market participants, including brokers, exchanges, and clearing corporations. This move is part of SEBI's ongoing efforts to leverage technology to create a more secure and transparent market ecosystem.