SEBI encourages investors to use CeFCoM platform for paying advisers, research analysts

Mumbai (Maharashtra) [India], June 12 (ANI): Markets regulator SEBI encourages investors to pay fees to their investment advisers and research analysts through the Centralized Fee Collection Mechanism for investment advisers and research analysts (CeFCoM).

In a statement, SEBI on Thursday said CeFCoM is a secure and transparent payment ecosystem developed to ensure that investors pay fees only to registered investment advisors and research analysts. It is an optional mechanism.

CeFCoM is a payment mechanism that differentiates registered investment advisers and research analysts from unregistered entities acting as investment advisers and research analysts.

CeFCoM has been operationalised from October 1, 2024 and is managed by BSE Ltd in association with MF Utilities India Pvt. Ltd.

In CeFCoM, investors can make payment of fees through multiple payment modes such as Net Banking, Debit Card, UPI/UPI Autopay, IMPS/NEFT/RTGS, eNACH and even through Cheque and Credit Cards.

As of June 10, 2025, an amount of fees of more than Rs 5 Crore has been paid by investors through CeFCoM, SEBI said in its statement.

On Wednesday, Securities and Exchange Board of India (SEBI) has announced launching 'SEBI check' tool to validate UPI handles and registered bank accounts for secured payments by investors.

The "Validated UPI Handles" and "SEBI Check" will enhance Investor Protection and Combat deepfakes and cyber frauds. Investors can check on 'SEBI Sheck" whether a UPI handle or bank account is registered or not before making any payment.

Investors can verify the authenticity of UPI IDs either by scanning a QR code or by entering the UPI ID manually.

For bank details, investors can confirm the bank details such as bank account number and Indian Financial System Code (IFSC) of a registered intermediary.

The core of this new framework will be a mandatory, structured UPI address for intermediaries, composed of a username and a unique handle.

Username, will be a readable name chosen by the intermediary, followed by a mandatory suffix that clearly identifies their category, for example, brk for a Stock Broker or mf for a Mutual Fund.

Valid handle will feature a unique and exclusive identifier, "@valid", combined with the name of the self-certified syndicate bank. These "validated" handles will be exclusively allocated by the National Payments Corporation of India (NPCI) only for payment collection by SEBI-registered intermediaries.

SEBI Check will be available to investors for use from October 1, 2025.

SEBI Chairman Tuhin Kanta Pandey said, "In recent years, unregistered entities have increasingly misled investors by collecting funds without authorization, often siphoning off these amounts for personal gain. This new framework is designed to proactively curb such fraudulent activities, enabling investors to easily identify legitimate SEBI-registered market intermediaries and make payments to them securely and efficiently."

To address cyber frauds, Deepfakes and issue of impersonation, SEBI says new tool will enhance investor confidence, as investors can now find out whether intermediaries who is asking for funds are registered or not.

SEBI Chairman said, "This innovative mechanism is set to significantly improve the safety and accessibility of financial transactions within the securities market by providing a verified and secure payment channel."

SEBI Chairman added that the regulator will work with online play stores to show only validated Apps for payments. (ANI)

(The story has come from a syndicated feed and has not been edited by the Tribune Staff.)