Sebi Proposes 'Pay Right' to Secure Securities Market Payments

The Securities and Exchange Board of India (Sebi) has proposed a new mechanism utilizing Unified Payments Interface (UPI) to ensure secure payments in the securities market. The plan includes unique UPI IDs and visual confirmations to verify legitimate financial intermediaries, aiming to combat digital fraud and enhance investor confidence.

The Securities and Exchange Board of India (Sebi) is set to introduce a novel mechanism leveraging Unified Payments Interface (UPI) for secure and efficient transactions in the securities market. By creating unique UPI addresses for registered market intermediaries, Sebi aims to enable investors to verify the legitimacy of their payments.

The proposed changes include raising the UPI payment limit to Rs 5 lakh per day for capital market transactions, a significant increase from the existing Rs 2 lakh cap. This adjustment will be regularly assessed in collaboration with the National Payments Corporation of India (NPCI).

Addressing the ongoing issue of fraudulent entities deceiving investors, the initiative introduces a distinctive UPI ID and a green triangle icon as markers of authenticity. These measures, discussed with stakeholders like NPCI, underscore the synergy of technology and trust to fortify investor confidence and deter financial fraud.

(With inputs from agencies.)