Capital market regulator Securities and Exchange Board of India (Sebi) has announced the launch of a central mechanism for fee collection by Investment Advisers (IAs) and Research Analysts (RAs). Investors will now be able to pay fees to IAs/RAs through a designated platform/portal called ‘Centralised Fee Collection Mechanism’ or CeFCoM.
The designated platform will be administered by a recognised Administration and Supervisory Body (ASB), a Sebi circular issued on Friday, said.
The mechanism has been co-created by BSE with the help of various stakeholders, the circular said and BSE will specify the operational framework for the mechanism on or before September 23, 2024 and make the mechanism operational from October 1, 2024.
The regulator felt the need for such a mechanism in view of the growing interest in the securities market and has now introduced this facility after undertaking consultations with relevant stakeholders.
While the mechanism is optional, it has directed ASBs to take steps to encourage clients and the registered IAs and RAs to avail the services of this mechanism. Registered IAs and RAs shall encourage their clients to use this mechanism.
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