SEBI Promotes CeFCoM for Secure Payments to IAs and RAs

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  • Last Updated on 16 June, 2025

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SEBI CeFCoM

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.

Click Here To Read The Full Press Release

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied