Secure UPI - Is it mandatory for SEBI research analysts & Investment advisors?

Scanning UPI Image credit: https://www.freepik.com

SEBI has taken a radical step towards investor protection when they issued a circular on 11th Jun 25 ( vide circular SEBI/HO/DEPA-II/DEPA-II_SRG/P/CIR/2025/86) which has defined the framework of use of Unique UPI IDs. These unique UPI Ids are clearly identifiable and mapped to respective categories of SEBI intermediaries.

Every SEBI intermediary category will have a unique identification which will be added to user name string used in UPI. For e.g. Research analyst have "ra" , Investment advisers have "ia", stock brokers have "brk", MF have "mf" and so on, as identifier to username string.

Apart from unique identifier, such UPI shall be tagged differently at bank level. Every UPI id will be "Valid" word added just before the bank name. For e.g. @validsbi, @validhdfc, @validboi and so on.

As far as the timelines are concerned the banks will start allocating the UPI Ids within 90 days from date of circular tentatively by 15th Sep 25 ( timeline defined in circular)

There are many questions and confusion regarding the allocation and use of UPI ids. We simplify the circular for better understanding

Is it mandatory to obtain the unique UPI Ids ?

Yes, it is mandatory to obtain Unique UPI Ids by all existing research analyst and other intermediaries. Even if you are not currently using the UPI as mode of receiving payment from client, still you have to obtain the unique UPI Ids and give your client as an option to make payment apart from other modes of payment like RTGS, NEFT, payment aggregators, CeFCom etc.

What if I am already using UPI as mode receiving payment, will it be discontinued?

Those research analyst and other intermediaries who are already using UPI Ids as mode of receiving payment from client, they will have to also have to obtain the new unique UPI ids. The old UPI ids will be discontinued by Dec 25 as per the timelines given in the circular. Until than both old UPI ids as well as new UPI ids shall be valid. But post Dec 25, only new UPI ids shall have to be used by intermediaries.

From when I can start using new unique UPI Ids?

Research analyst and other intermediaries can start using new UPI Ids from 1st Oct 25. In the month of Sep 25, the process of allocation of new UPI Ids shall start. From Oct 25 to Nov 25, both new and old UPI Ids shall be valid. From Dec 25, only new UPI ids shall be valid and old UPI Ids shall be discontinued.

I use multiple bank accounts for taking payment from Investors, do I need take unique id for each bank account?

Yes, if you continue to use multiple bank account for taking payment from Investor, in such case you have to take unique id for each bank. However, the username can be same across bank but it must be unique at bank level. For e.g you can take abc.ra@validhdfc, abc.ra@validicici or abc.ra@validsbi i.e the ids are different but user name is same across all the banks

Is it mandatory for Investors to make payment using this structured UPI id only?

No, It shall remain optional for Investor to use. But it is mandatory for intermediaries to obtain and make available this structured UPI address to their investors. The investors can choose their preferred mode of payment, such as UPI, IMPS, NEFT, RTGS, or Cheques. If an investor opts to use UPI for the payment to registered intermediaries, then they have to do so only using the new UPI IDs allotted to registered intermediaries

Can I use these unique UPI ids for collecting other payment which are not coming from Investors?

No, UPI IDs with the handle @valid shall be exclusively designated for payment collection by intermediaries registered with SEBI under merchant category code 6211. The usage of these UPI handles for any activity other than the intended payment collection shall not be permitted. The guidelines regarding use of these unique UPI ids are are yet to be issued.

We hope that above blog would be useful and give clarity about the process. You can get in touch for SEBI compliance support services which helps you stay compliant.