Don’t Fall for Fake UPI Handles! Zerodha’s Nithin Kamath Flags Broker Scams As SEBI Steps In With New UPI Safety Rule

Nithin Kamath, the co-founder and CEO of Zerodha on Monday raised alarm over the rising number of financial scams involving fraudsters impersonating stockbrokers. Taking to X (formerly Twitter), Kamath said such fraudulent activities have "skyrocketed" in recent months, prompting a swift regulatory response from SEBI.

“The number of fraud cases involving scammers impersonating brokers and asking for money to be transferred to random accounts has skyrocketed,” tweeted Kamath. 

He also highlighted that to counter this rising threat, SEBI has introduced a new UPI security feature that restricts fund transfers to only verified broker UPI handles, such as brokername@validbank. This measure, Kamath noted, is aimed at protecting investors from being misled into sending money to fraudulent accounts.

Also Read: What Does Nithin Kamath Do When People Ask Him About Stock Tips? | Republic World

“All legitimate fund transfers will now only go to verified UPI handles… We (@zerodhaonline) will implement this soon, and this should help reduce fraud incidents significantly,” Kamath added.

The new SEBI directive mandates brokers to register verifiable UPI IDs with clear association to their licensed business names and banks. Transfers to any unverified handle will no longer be accepted under the regulated system.

These scams typically involve fraudsters posing as representatives of reputed brokerages and enticing investors—particularly new entrants—to deposit funds via UPI to personal or dummy accounts. The latest feature, which will come into force from October 1, 2025, aims to tackle growing concerns of payment fraud among investors, especially in online investment platforms, Sebi said in a notification of June 11, 2025. 

It may be recalled that early this year Nithin Kamath, has released an alarming video on social media about a new digital scam that has the potential to drain bank accounts. In a video shared on social media, Kamath detailed how scammers are exploiting people's goodwill to gain access to their personal devices and financial information.