In a major move to protect investors from fraud in the stock market, SEBI (Securities and Exchange Board of India) has announced a new UPI-based payment system that will become mandatory from 1 October 2025. This step aims to stop fake brokers and unregistered middlemen from cheating people.
From October onwards, all registered brokers and market intermediaries must accept payments only through a SEBI-approved UPI ID. This will help investors confirm that they are dealing with a genuine and SEBI-registered firm.
Why SEBI Is Making UPI Payments Mandatory for Stock Transactions
Fake brokers and financial scammers have increased over the years. Many investors have unknowingly sent money to fraud companies claiming to be SEBI-approved. These scams are hard to trace once the money is gone. So, SEBI has taken a firm step to stop this.
According to SEBI Chairman Tuhin Kanta Pandey, this new system will provide a secure and verified payment channel for all stock market transactions. The system uses Unified Payments Interface (UPI), which is already popular in India for fast and secure online payments.
This verified UPI setup will:
- Show which brokers are officially registered
- Prevent people from sending money to fake companies
- Increase trust in financial transactions
What Will Change for Investors From 1 October 2025?
From 1 October 2025, if you want to invest in stocks, mutual funds, or any capital market product, you must use the new SEBI-linked UPI system. This will apply to all registered entities like brokers, advisors, and fund managers.
Here’s what the system will offer:
✅ Unique UPI ID for Registered Brokers
Every SEBI-approved broker or market participant will have a special UPI ID linked to their SEBI registration.
✅ Easy Verification for Investors
Before making any payment, investors can:
- Scan a QR code
- Enter UPI ID
- Use broker’s account number and IFSC code
This verification process will confirm whether the broker is genuine. If the broker is registered, a green “Thumbs Up” mark will appear.
If this thumbs-up mark does not appear, do not proceed. It means the broker might not be SEBI-verified.
Limit on Daily UPI Transactions for Stock Market
SEBI has also set a limit on how much money can be paid through UPI for stock market use. From October, investors can make UPI payments up to ₹5 lakh per day for stock-related transactions.
This limit is more than double the current cap of ₹2 lakh, and it may be reviewed again in future with NPCI (National Payments Corporation of India).
The increased limit gives more flexibility to serious investors while keeping risks in check.
Quick Recap: How the New SEBI UPI Rule Helps You
| Feature | Benefit |
| Verified UPI ID | Ensures payment goes to SEBI-registered broker only |
| QR Code & UPI ID Check | Easy way to verify before sending money |
| ₹5 Lakh Daily Limit | High-value investors can invest safely |
| Thumbs Up Mark | Visual confirmation of a verified transaction |
| Safe from Fake Brokers | Reduces fraud and cheating in stock market |
Jio BlackRock Also Enters Indian Market With SEBI Nod
In a related development, Jio BlackRock Investment Advisors Pvt. Ltd. has received regulatory approval from SEBI and BSE to operate in India.
This new venture is a 50:50 joint project between Jio Financial Services and BlackRock Inc., one of the world’s largest asset managers. Earlier, SEBI also gave a green signal to Jio BlackRock Asset Management Pvt. Ltd. on 27 May 2025 to start managing mutual fund investments.
This shows how SEBI is also opening doors for trusted international and Indian players while blocking scam operators.
What You Should Do as an Investor
- Always check if a broker is SEBI registered before sending any money.
- Use the SEBI UPI system once it goes live in October 2025.
- Look for the green thumbs-up symbol before confirming any payment.
- Avoid making payments through random bank transfers or unofficial links.
This system will be your first line of defence against financial fraud.
Disclaimer: This article is for informational purposes only. Please consult a registered financial advisor before investing. Do not share UPI or bank details with unknown parties.
