Inventory market scams are rising. Many fraudsters/finfluencers/unregistered folks method traders on social media pretending to be SEBI registered funding advisers or analysis analysts.
They typically present faux revenue screenshots and solid SEBI certificates and persuade traders to switch cash as charges or investments. By the point traders notice the reality, their cash is gone.
The true downside?
Most traders don’t know the right way to examine if they’re coping with a real SEBI-registered middleman or a trickster.
To sort out this, SEBI (the market regulator) has launched two new investor-friendly instruments:
- SEBI Legitimate UPI Handles, and
- SEBI Verify Characteristic
Launched via a round on June 11, 2025, these instruments make it simple so that you can confirm who you’re paying and enable you to keep away from scams.
Let’s perceive how they work.
Why did SEBI introduce Legitimate UPI Handles?
Fraudsters love UPI as a result of it’s prompt, simple, and acquainted.
They typically ask victims to switch cash on to their cellular quantity through apps like PhonePe, Google Pay, or Paytm.
Not like NEFT/IMPS, UPI doesn’t make you pause. So, you have got no time to suppose twice.
That’s precisely why SEBI stepped in.
Now, with Legitimate UPI Handles, you’ll be able to instantly inform whether or not you’re paying a registered middleman or a fraudster. Simply by taking a look at their UPI ID.
There are different methods too, and I’ve mentioned these on this publish (Watch out for Fraudsters!). Nevertheless, on this publish, let’s concentrate on these new SEBI measures.
Right here is the video explainer on Legitimate UPI handles and SEBI examine from BSE India Youtube channel.
What are SEBI Legitimate UPI Handles?
Each SEBI-registered middleman (Funding Adviser, Analysis Analyst, and many others.) should now use a particular UPI ID format authorised by SEBI, BSE/NSE, and their financial institution.
The format makes it clear who you’re coping with.
<username>. <middleman class> @ legitimate <Financial institution Title>
Legitimate UPI handles would have “legitimate” embedded within the UPI handle itself.
Just a few examples.
ABC is a Registered Funding Adviser and makes use of ICICI Financial institution for charge assortment.
A attainable legitimate UPI deal with may very well be abc.ia@legitimateicici
“ia” written between “.” and “@” denotes the character of the middleman’s registration with SEBI. On this case, since ABC is an funding adviser, “ia” is suffixed to username within the UPI deal with.
XYZ is a Analysis Analyst (RA) and makes use of HDFC Financial institution for charge assortment.
A attainable legitimate UPI deal with may very well be xyz.ra@legitimatehdfc
On this case, since XYZ is a analysis analyst, “ra” is suffixed to username within the UPI deal with.
“@legitimate” is the defining function of legitimate UPI handles. All such handles can have “legitimate” added to the UPI deal with.
If the key phrase “legitimate” is lacking from the UPI deal with shared with you, this implies you’re NOT coping with a registered middleman and should keep away from participating with such an individual. Please observe “legitimate” comes AFTER “@” AND NOT earlier than.
What if you’re given a QR code?
A UPI QR code is only a visible illustration of UPI handle and ultimately interprets to a UPI handle solely.
Earlier than paying,
- Scan the QR code and examine the UPI handle that seems. It should comply with legitimate UPI deal with format. If it doesn’t, you’re coping with a fraudster.
- Verify if the QR ought to has a thumbs-up icon within the center. Like the next picture.
Methodology 1 Is extra dependable methodology 2.
Why?
As a result of, as I perceive, a thumbs-up icon might not be troublesome to position for a charlatan too. Furthermore, I’ve seen some rest from SEBI on this thumbs-up icon not less than for now. Therefore, chances are you’ll get a QR code with out thumbs-up from a real middleman too.
Subsequently, even when the QR code seems to be real, be certain that the resultant UPI deal with follows the legitimate UPI format. There isn’t a concession on the legitimate UPI format.
What if you’re requested to switch cash via NEFT/IMPS/RTGS?
Fraudsters would possibly skip UPI and share checking account particulars as an alternative. And ask you to switch cash via NEFT/IMPS/RTGS.
No worries. SEBI has resolution for this downside too.
Now you can confirm any account quantity or IFSC via the brand new SEBI Verify function and see if it belongs to a real registered middleman.
How does SEBI Verify Characteristic work?
You’ll be able to confirm the authenticity/genuineness of the next utilizing the SEBI Verify function.
- QR code: Add the QR code and examine
- UPI Handle: Sort the UPI handle to examine
- Financial institution particulars: Enter the IFSC and the checking account quantity to confirm
If the QR code/UPI handle/financial institution particulars shared with you for cost fails the SEBI Verify, you’re coping with a charlatan. Cease proper there. Don’t switch any cash or deal any additional with such fraudsters.
You might be coping with fraudster if
- The QR code/UPI handle/checking account particulars shared with you fail the SEBI Verify. OR
- The UPI handle shared with you for cost is NOT a legitimate UPI deal with. OR
- You might be requested to switch cost to a cellular quantity utilizing PhonePe/GPay/Paytm. SEBI Registered intermediaries together with Funding Advisers (IAs) and Analysis Analysts (RAs) can settle for UPI funds solely on Legitimate UPI handles.
With SEBI Legitimate UPI Handles and SEBI Verify, you not should guess who you’re paying. Simply confirm the small print and defend your hard-earned cash.
Keep alert. Keep knowledgeable. Don’t let fraudsters revenue out of your belief.
