Sebi's 'Pay Right' Initiative: Securing Digital Payments in Stock Market

Sebi proposes a new mechanism using UPI to ensure secure payments in the securities market. The initiative suggests unique UPI IDs for registered market intermediaries to verify transactions. It aims to prevent fraud and boost investor confidence by distinguishing legitimate entities from unregistered ones.

The Securities and Exchange Board of India (Sebi) has unveiled a promising proposal aimed at fortifying digital payments in the securities market by leveraging the Unified Payments Interface (UPI) system. This move seeks to streamline and secure transactions using a unique UPI address for each registered market intermediary.

Introducing a UPI payment cap of Rs 5 lakh per day for capital market transactions, the proposal marks a significant raise from the current limit of Rs 2 lakh. Sebi has opened the floor for public comments on the potential implementation until February 21.

This initiative, labeled as 'Pay Right,' strives to combat digital fraud by offering investors a clear verification process before authorizing payments. The fusion of technology and trust is anticipated to reassure investors navigating the digital investment landscape.

(With inputs from agencies.)