SEBI proposes to create a secure payment system for registered market intermediaries

The Securities and Exchange Board of India (SEBI) is preparing to create a new system to ensure secure and better payments in the securities market through the Unified Payment Interface (UPI). Market regulator SEBI took this step to protect legitimate financial intermediaries from fraudsters.

Under the proposed system, SEBI has suggested creating a special UPI address for registered market intermediaries, which will make it easier for investors to ensure that they are making payments only to registered entities. The proposal brings UPI payment for transactions in the capital market to Rs 5 lakh a day, an increase over Rs 2 lakh at present times. It will be revisited periodically in consultation with the National Payments Corporation of India (NPCI). On Friday, a consultation paper for the proposals was circulated by the Securities and Exchange Board of India and invited public feedback for them till February 21.