Inventory market scams are rising. Many fraudsters/finfluencers/unregistered folks method buyers on social media pretending to be SEBI registered funding advisers or analysis analysts.
They usually present faux revenue screenshots and cast SEBI certificates and persuade buyers to switch cash as charges or investments. By the point buyers understand the reality, their cash is gone.
The true drawback?
Most buyers don’t know how one can 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 Test Function
Launched by way of a round on June 11, 2025, these instruments make it simple so that you can confirm who you might be paying and assist 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 on the spot, simple, and acquainted.
They usually ask victims to switch cash on to their cellular quantity through apps like PhonePe, Google Pay, or Paytm.
In contrast to NEFT/IMPS, UPI doesn’t make you pause. So, you’ve no time to assume twice.
That’s precisely why SEBI stepped in.
Now, with Legitimate UPI Handles, you may instantly inform whether or not you might be 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!). Nonetheless, 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 so on.) should now use a particular UPI ID format accredited by SEBI, BSE/NSE, and their financial institution.
The format makes it clear who you might be coping with.
<username>. <middleman class> @ legitimate <Financial institution Identify>
Legitimate UPI handles would have “legitimate” embedded within the UPI deal with itself.
A couple of examples.
ABC is a Registered Funding Adviser and makes use of ICICI Financial institution for charge assortment.
A potential legitimate UPI deal with could possibly 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 potential legitimate UPI deal with could possibly 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 characteristic of legitimate UPI handles. All such handles may 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 might be NOT coping with a registered middleman and should keep away from partaking with such an individual. Please word “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 deal with and ultimately interprets to a UPI deal with solely.
Earlier than paying,
- Scan the QR code and examine the UPI deal with that seems. It should comply with legitimate UPI deal with format. If it doesn’t, you might be coping with a fraudster.
- Test if the QR ought to has a thumbs-up icon within the center. Like the next picture.
Technique 1 Is extra dependable technique 2.
Why?
As a result of, as I perceive, a thumbs-up icon might not be tough to position for a charlatan too. Furthermore, I’ve seen some rest from SEBI on this thumbs-up icon at the very least for now. Therefore, it’s possible you’ll get a QR code with out thumbs-up from a real middleman too.
Due to this fact, even when the QR code appears to be like real, be certain that the resultant UPI deal with follows the legitimate UPI format. There is no such thing as a concession on the legitimate UPI format.
What if you’re requested to switch cash by way of NEFT/IMPS/RTGS?
Fraudsters may skip UPI and share checking account particulars as a substitute. And ask you to switch cash by way of NEFT/IMPS/RTGS.
No worries. SEBI has resolution for this drawback too.
Now you can confirm any account quantity or IFSC by way of the brand new SEBI Test characteristic and see if it belongs to a real registered middleman.
How does SEBI Test Function work?
You may confirm the authenticity/genuineness of the next utilizing the SEBI Test characteristic.
- QR code: Add the QR code and examine
- UPI Deal with: Kind the UPI deal with to examine
- Financial institution particulars: Enter the IFSC and the checking account quantity to confirm
If the QR code/UPI deal with/financial institution particulars shared with you for cost fails the SEBI Test, you might be 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 deal with/checking account particulars shared with you fail the SEBI Test. OR
- The UPI deal with shared with you for cost is NOT a sound 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 Test, you not need to guess who you might be paying. Simply confirm the main points and shield your hard-earned cash.
Keep alert. Keep knowledgeable. Don’t let fraudsters revenue out of your belief.