Mumbai: Market investors will now have the option to transfer funds directly to market intermediaries through UPI (Unified Payment Interface) IDs, with market regulator SEBI issuing detailed guidelines on the adoption of standardised, validated, and exclusive UPI IDs for payment collection by SEBI-registered intermediaries from investors.SEBI has set an upper limit of ₹5 lakh per day for capital market transactions done through UPI as of now, subject to periodic review and further evaluation as necessary.”The standardised, validated, and exclusive UPI IDs shall be available for investors for making payments to intermediaries with effect from October 1, 2025,” SEBI said.”It has been decided to put in place a structured Unified Payment Interface (UPI) address mechanism for SEBI-registered investor-facing intermediaries to collect funds from their investors. This mechanism shall provide investors with the option to transfer funds directly to the requisite bank accounts of intermediaries that have been validated with SEBI. The transfer of funds through this mechanism will assure investors that their payments are being made to verified and registered market intermediaries,” SEBI said in a circular.”While the use of the UPI mechanism by investors shall remain optional, it is mandatory for intermediaries to obtain and make available this structured UPI address to their investors. Additionally, intermediaries are advised and encouraged to actively promote and facilitate the adoption of this mechanism among their investors,” SEBI added.”This move shows SEBI’s growing tilt toward retail investor protection. By capping UPI transactions at ₹5 lakh, SEBI is drawing a firm boundary—one that ensures ease of access for small investors while creating a natural speed bump for over-leveraged or high-risk trades. It’s not a restriction as much as a safeguard. UPI is fast, frictionless, and widely adopted. Pairing that with regulatory prudence makes the market safer for those who are just starting out,” said Trivesh D, COO of Tradejini.
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