Investors Paid Over Rs5 Crore in Fees to IAs and RAs through SEBI’s CeFCoM Platform

Moneylife Digital Team 13 June 2025

Investor Interest

More than Rs5 crore in advisory and research fees have been routed through the Securities and Exchange Board of India’s (SEBI) centralised fee collection mechanism (CeFCoM) as of 10 June 2025, signalling growing investor trust in the platform and a clear preference for dealing with SEBI-registered professionals.

Launched on 1 October 2024, CeFCoM was developed by BSE Ltd in collaboration with MF Utilities India Pvt Ltd to create a secure, closed-loop system for fee payments to investment advisers (IAs) and research analysts (RAs) registered with SEBI.

According to the market regulator, the mechanism offers a structured and verifiable way for investors to pay only legitimate and regulated market participants, helping them avoid unregistered and potentially fraudulent advisers.

Although its use is optional, the uptake has been significant, SEBI says, adding that it has been actively promoting CeFCoM as a safer and more transparent alternative to informal payment channels. The growing volume of transactions underscores both the demand for greater security in the financial advisory space and investors’ increasing awareness of regulatory safeguards.

According to SEBI, CeFCoM supports a wide array of payment methods, including UPI and UPI Autopay, net banking, debit and credit cards, IMPS, NEFT, RTGS, eNACH and even cheques. This wide coverage makes the platform accessible to investors across different locations and technology capabilities.

The Rs5 crore milestone demonstrates the mechanism’s potential to transform how advisory fees are handled in India. By offering a centralised, traceable payment system, CeFCoM reduces the risk of fraud and fee misappropriation, while providing a clear audit trail that protects investors as well as registered advisers, SEBI says.

With concerns mounting over the rise in unregulated financial advice and impersonation scams, SEBI’s initiative is a timely and necessary intervention. CeFCoM not only promotes transparency and compliance in the investment advisory industry but also reinforces investor confidence by ensuring that their money reaches only authentic and accountable service providers.

As SEBI continues its investor education efforts, the CeFCoM platform is expected to play a key role in building a safer, more reliable financial ecosystem.

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