SEBI Promotes CeFCoM for Secure Payments to IAs and RAs

Press Release No. 32/2025; Dated: 12.06.2025

The Securities and Exchange Board of India (SEBI) has taken a significant step toward enhancing investor protection and transparency in the advisory ecosystem by encouraging the use of the Centralized Fee Collection Mechanism (CeFCoM) for fee payments to Investment Advisers (IAs) and Research Analysts (RAs).

1. What Is CeFCoM?

CeFCoM is a secure and transparent digital payment platform introduced by SEBI. It is designed to ensure that investors pay advisory or research-related fees only to SEBI-registered IAs and RAs, thereby reducing the risk of fraud and misdirection of funds.

Key features include:

• Centralised routing of payments
• Verification of advisor/analyst registration
• Audit trail and transparency for all transactions

2. Voluntary Adoption, Encouraging Uptake

SEBI has clarified that CeFCoM is an optional mechanism, not a mandatory requirement. However, by encouraging its use, SEBI aims to build trust and safeguard the interests of retail investors while streamlining the fee payment process across the advisory industry.

3. Impact and Usage Statistics

As of June 10, 2025, investors have used CeFCoM to pay over ₹5 crore in fees to registered investment advisers and research analysts. This growing adoption reflects increasing investor confidence in the mechanism’s efficiency and safety.

4. Conclusion

By promoting CeFCoM, SEBI continues its efforts to strengthen regulatory compliance and investor confidence in the capital markets. Investors are urged to utilize such secure channels when paying for advisory and research services to avoid falling prey to unregistered entities or dubious practices.

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