Introduction

To tackle the growing menace of financial frauds in the investment space, SEBI (Securities and Exchange Board of India), in collaboration with NPCI (National Payments Corporation of India), has announced a major reform — the launch of the "@vailid" UPI handle. This initiative is set to go live on October 1, 2025, and aims to bring greater transparency and trust to investor payments.

Why Was This Needed?

In the past few years, several retail investors have lost money to fraudulent operators posing as SEBI-registered entities. These fraudsters typically collect money via common UPI handles and vanish without a trace. Since it was difficult to verify whether a payment receiver was a genuine SEBI-registered intermediary or not, SEBI decided to step in.

What is the "@vailid" UPI Handle?

The "@vailid" handle will act as a verification tag for UPI payments. Only SEBI-registered intermediaries will be allowed to use this handle, and each UPI ID will be verified and approved by banks, post proper documentation.

Key Features:

• UPI handles like abcstock.biz@vailid, xyzmf.mf@vailid etc.

• Each category of SEBI-registered intermediary will have a designated suffix (e.g., .mf for mutual funds, .biz for stockbrokers)

• Verified UPI handles will also display a green triangle trust symbol to confirm authenticity

Who Will Use It?

This verified UPI system will apply to the following ten SEBI-registered categories:

1. Stockbrokers

2. Depository Participants

3. Investment Advisors

4. Research Analysts

5. Mutual Funds

6. Portfolio Managers

7. Alternative Investment Funds (AIFs)

8. Infrastructure Investment Trusts (InvITs)

9. Real Estate Investment Trusts (REITs)

10. Custodians

Each type will use a unique suffix in the UPI ID to make it easier to identify the nature of the entity.

Transition & Implementation Timeline

• Launch Date: October 1, 2025

• New UPI IDs must be generated within 90 days of SEBI’s circular

• Old UPI IDs will be phased out by mid-December 2025, with a 3-month grace period for transition

For existing mandates like SIPs or ECS, no immediate action is needed. They will continue uninterrupted until updated instructions are given by SEBI.

How Will This Help Investors?

This move aims to address the rising investor concern around payment fraud and fake advisory schemes. Here's how investors will benefit:

• Greater Transparency: Investors can verify UPI IDs before making any payment

• Increased Trust: Only SEBI-recognized firms will have the ability to use the "@vailid" handle

• Fraud Protection: Reduced chances of money being sent to fraudulent or unregulated entities

Before transferring money, investors can simply check the UPI ID ending and look for the green triangle trust symbol.

Conclusion

The "@vailid" initiative is a well-timed, digital-first approach by SEBI and NPCI to ensure safer, more transparent transactions in the securities market. As India’s financial ecosystem becomes increasingly digital, such measures will serve as critical safeguards for investors.

UnlistedZone Take: The success of this system will depend on its enforcement and investor awareness. But if implemented well, it could become a permanent trust layer for India's retail investors.