SEBI has set an higher restrict of ₹5 lakh per day for capital market transactions carried out via UPI as of now, topic to periodic overview and additional analysis as essential.
“The standardised, validated, and unique UPI IDs shall be accessible for buyers for making funds to intermediaries with impact from October 1, 2025,” SEBI stated.
“It has been determined to place in place a structured Unified Fee Interface (UPI) tackle mechanism for SEBI-registered investor-facing intermediaries to gather funds from their buyers. This mechanism shall present buyers with the choice to switch funds on to the requisite financial institution accounts of intermediaries which have been validated with SEBI. The switch of funds via this mechanism will guarantee buyers that their funds are being made to verified and registered market intermediaries,” SEBI stated in a round.
“Whereas the usage of the UPI mechanism by buyers shall stay elective, it’s necessary for intermediaries to acquire and make accessible this structured UPI tackle to their buyers. Moreover, intermediaries are suggested and inspired to actively promote and facilitate the adoption of this mechanism amongst their buyers,” SEBI added.
“This transfer reveals SEBI’s rising tilt towards retail investor safety. By capping UPI transactions at ₹5 lakh, SEBI is drawing a agency boundary—one which ensures ease of entry for small buyers whereas making a pure velocity bump for over-leveraged or high-risk trades. It’s not a restriction as a lot as a safeguard. UPI is quick, frictionless, and broadly adopted. Pairing that with regulatory prudence makes the market safer for individuals who are simply beginning out,” stated Trivesh D, COO of Tradejini.
