Standardised UPI IDs

UPI has become the default way many retail investors pay for public issue applications. That convenience carries a risk: a fraudster can put up a fake or lookalike UPI handle and collect money meant for a genuine intermediary. SEBI's response is to make sure every UPI ID an investor sees in this process is verified and validated against a real, registered market intermediary.

A verified UPI ID is linked to a validated bank account of the user, which secures the transaction at both ends. RTAs are required to make this facility available, and the process runs alongside the standard UPI-ASBA public issue mechanism:

1. The investor fills in bid details along with a UPI ID in the application form or the mobile/web interface of an intermediary (syndicate member, registered stockbroker, RTA or depository participant), which uploads the bid to the stock exchange bidding platform.
2. The stock exchange shares the bid details, with the investor's UPI ID, with the Sponsor Bank appointed by the issuer.
3. The Sponsor Bank requests the investor to authorise blocking of funds; the investor confirms using their UPI PIN, and the equivalent amount is blocked, not debited, in the investor's account.
4. Post allotment, funds equivalent to the allotment are debited; the balance is unblocked for non-allotted or partially allotted applications by T+2 days (T being the issue closing date).

RTAs are also responsible for creating investor awareness of UPI payment handles and the "SEBI Check" functionality, so investors can verify an intermediary's UPI ID before using it.

Ms Priyanka Bhat applies for Rs 1,50,000 worth of shares in an IPO through her broker's mobile app. The app shows a UPI collection ID belonging to the issue's appointed intermediary.

Before authorising, she checks the handle against SEBI's "SEBI Check" facility, confirming it is a genuine, validated ID linked to a registered intermediary's bank account — not a fraudulent lookalike sent to her separately by SMS.

She authorises the block using her UPI PIN. Rs 1,50,000 is blocked, not debited, in her bank account. She is allotted shares worth Rs 90,000; the block on the remaining Rs 60,000 is released by T+2 days after the issue closes, exactly as the timeline requires.

Chapter 10, section 10.3.3 (Adoption of Standardised, Validated and Exclusive UPI IDs), immediately after the UPI-as-part-of-bidding process box. Expect a question on what a verified UPI ID is linked to (a validated bank account), the RTA's role in investor awareness, and the T+2 day unblocking timeline for non-allotted or partially allotted applications.

• A verified UPI ID protects against fraud by confirming the receiving account, not by changing how blocking or debiting works — the underlying ASBA mechanics (block, then debit on allotment) are unchanged.
• T+2 days is the unblocking deadline for non-allotted/partial applications, distinct from other timelines in the same chapter (such as the 60-minute SCSB reconciliation window after bid closure).
• "SEBI Check" is the investor-facing verification tool — RTAs are specifically tasked with creating awareness of it, which is itself an examinable RTA responsibility.
• Do not confuse the Sponsor Bank (which manages the UPI mandate and fund flow for the issue) with a Self-Certified Syndicate Bank (SCSB), which holds the ASBA account itself — both appear in the same UPI-ASBA process but play different roles.