Sebi in action: Market regulator SEBI has prepared another proposal to shock the business of unreserved entities/finfluesers. The Securities and Exchange Board of India (SEBI) has proposed a system through which investors will be able to ensure that they are paying money to a regulated or registered entities. SEBI has suggested the use of special UPI IDs that will be generated through a software and will include the name of the segment and in which it is operating. SEBI has released a consultation paper related to it on 31 January today. Apart from this, SEBI has proposed to increase the upper limit of Daily Transaction from Rs 2 lakh to Rs 5 lakh per day to Rs 5 lakh through UPI, but for only the capital market transactions.
What is SEBI’s proposal with UPI ID?
According to SEBI’s consultation paper, many unreserved entities for years have incorrectly raise money from investors and use them for their personal benefits and investors are misled. The method of special UPI ID can be adopted for their identification. SEBI hopes that this will make investors who are sending money, SEBI has registered intermediates. Usually the UPI address contains username and handle which is associated with each other with a symbol “@”. Now SEBI proposes that it will generate alphanumeric ID for the user and the handle will be a unique Identifier which will be connected to the bank of registered intermediates.