भारतीय (cid:366)ितभूित और िविनमय बोड(cid:330)
Securities and Exchange Board of India
CIRCULAR
SEBI/HO/MIRSD/MIRSD-POD-1/P/CIR/2024/120 September 13, 2024
All Registered Investment Advisers
All Registered Research Analysts
Investment Adviser Administration and Supervisory Body (IAASB)
Research Analyst Administration and Supervisory Body (RAASB)
Dear Sir/Madam,
Subject: Optional mechanism for fee collection by SEBI registered Investment
Advisers (IAs) and Research Analysts (RAs)
1. With the growing interest in the securities market, there is a need for a mechanism
for an investor to discern whether payment of fees is being made only to a
registered IA/RA. In order to create a closed and transparent payment ecosystem,
consultations were held with relevant stakeholders on the proposal of a separate
centralized mechanism for fee collection by IAs and RAs.
2. Pursuant to public consultation and various discussions with stakeholders, the
“Centralized Fee Collection Mechanism for IA and RA” (CeFCoM) is being
operationalized to facilitate collection of fees by registered IAs and RAs from their
clients.
3. Under this mechanism, clients shall pay fees to IAs/RAs, through a designated
platform/portal administered by recognized Administration and Supervisory Body
(ASB).
4. The mechanism has been co-created by BSE Limited with the help of various
stakeholders. BSE Limited shall specify the operational framework for the
mechanism on or before September 23, 2024 and make the mechanism
operational from October 01, 2024.
5. Though the mechanism is optional, ASB, in the interest of investors, shall take
steps to encourage clients and the registered IAs and RAs to avail the services of
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भारतीय (cid:366)ितभूित और िविनमय बोड(cid:330)
Securities and Exchange Board of India
this mechanism. Registered IAs and RAs shall encourage their clients to use this
mechanism.
6. This circular is issued in exercise of powers conferred under Section 11(1) of the
Securities and Exchange Board of India Act, 1992 read with regulation 14 and
regulation 15A of SEBI (Investment Advisers) Regulations, 2013 and SEBI
(Research Analysts) Regulations, 2014 to protect the interests of investors in
securities market and to promote the development of, and to regulate the securities
market.
7. This circular is available on SEBI website at www.sebi.gov.in under the categories
"Legal > Circulars", “Info For > Investment Advisers” and “Info For > Research
Analysts”.
Yours faithfully,
Aradhana Verma
General Manager
+91-22-26449633
E-mail: aradhanad@sebi.gov.in
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