Bhubaneswar: As many incidents of investors getting defrauded by unethical elements are seen now, SEBI has started developing a digital shield through which the investors can be protected from such frauds with the help of NPCI verified UPI Id. For this every bank and investors, business owners have to use this system.
By 1 October, a tool named ‘Valid’ will be launched and along with the tool ‘Sebi check’ it will validate all the payments and transactions authenticity. By October all the market participants having a number around 9,000 will have to roll out this feature on their trading platforms.
The chairman of Sebi, Tuhin Kanta, has expressed that NPCI has been associated for developing the tool and making new Ids for every bank to verify on Sebi check. All the market makers will be using for their transactions, payments, and collect funds from clients via UPI app. This will also benefit the market intermediaries like brokers, mutual funds, research analysts, investment advisers etc.
In 2019, Sebi had introduced the UPI payment method for the first time in the market. There is an upper limit upto 5 lakhs per day transactions set by Sebi and it brings a lot of feasibility due to the successful experience as well as efficiency. Now the UPI transaction will have a new Id for collecting funds from the clients via @Valid. This new development has been incorporated after a proper analysis of the market, investors and consultation. This system is only meant for the UPI transactions not applicable for the bank account or demat account holders. Those who are entering into mutual funds and SIPs, from October they can verify conformity of the bank details if they wish. Valid, a special UPI based payment ID that will be issued to those who are registered in Sebi.
-OdishaAge
