diff --git a/pallets/schemas/src/lib.rs b/pallets/schemas/src/lib.rs
index ecb3cff04f..4151512c8e 100644
--- a/pallets/schemas/src/lib.rs
+++ b/pallets/schemas/src/lib.rs
@@ -838,6 +838,13 @@ pub mod pallet {
 					payload_location == PayloadLocation::Itemized,
 				Error::<T>::InvalidSetting
 			);
+			// SignatureRequired is only valid for Itemized and Paginated payload locations
+			ensure!(
+				!settings.contains(&SchemaSetting::SignatureRequired) ||
+					payload_location == PayloadLocation::Itemized ||
+					payload_location == PayloadLocation::Paginated,
+				Error::<T>::InvalidSetting
+			);
 			let schema_name = match optional_schema_name {
 				None => None,
 				Some(name_payload) => {
diff --git a/pallets/schemas/src/tests/other_tests.rs b/pallets/schemas/src/tests/other_tests.rs
index b205913131..1852b1414f 100644
--- a/pallets/schemas/src/tests/other_tests.rs
+++ b/pallets/schemas/src/tests/other_tests.rs
@@ -756,7 +756,33 @@ fn create_schema_via_governance_v2_with_append_only_setting_and_non_itemized_sho
 		);
 	})
 }
+#[test]
+fn create_schema_via_governance_v2_with_signature_required_setting_and_wrong_location_should_fail()
+{
+	new_test_ext().execute_with(|| {
+		sudo_set_max_schema_size();
+
+		// arrange
+		let settings = vec![SchemaSetting::SignatureRequired];
+		let sender: AccountId = test_public(1);
 
+		for location in vec![PayloadLocation::OnChain, PayloadLocation::IPFS] {
+			// act and assert
+			assert_noop!(
+				SchemasPallet::create_schema_via_governance_v2(
+					RuntimeOrigin::from(pallet_collective::RawOrigin::Members(2, 3)),
+					sender.clone(),
+					create_bounded_schema_vec(r#"{"name":"John Doe"}"#),
+					ModelType::AvroBinary,
+					location,
+					BoundedVec::try_from(settings.clone()).unwrap(),
+					None,
+				),
+				Error::<Test>::InvalidSetting
+			);
+		}
+	})
+}
 /// Test that a request to be a provider, makes the MSA a provider after the council approves it.
 #[test]
 fn propose_to_create_schema_v2_happy_path() {
diff --git a/runtime/frequency/src/lib.rs b/runtime/frequency/src/lib.rs
index 7cda39cfca..950b4f88ae 100644
--- a/runtime/frequency/src/lib.rs
+++ b/runtime/frequency/src/lib.rs
@@ -375,7 +375,7 @@ pub const VERSION: RuntimeVersion = RuntimeVersion {
 	spec_name: create_runtime_str!("frequency"),
 	impl_name: create_runtime_str!("frequency"),
 	authoring_version: 1,
-	spec_version: 111,
+	spec_version: 112,
 	impl_version: 0,
 	apis: apis::RUNTIME_API_VERSIONS,
 	transaction_version: 1,
@@ -389,7 +389,7 @@ pub const VERSION: RuntimeVersion = RuntimeVersion {
 	spec_name: create_runtime_str!("frequency-testnet"),
 	impl_name: create_runtime_str!("frequency"),
 	authoring_version: 1,
-	spec_version: 111,
+	spec_version: 112,
 	impl_version: 0,
 	apis: apis::RUNTIME_API_VERSIONS,
 	transaction_version: 1,