SEBI Boosts Investor Protection with New Payment Safeguards
SEBI has introduced the Centralized Fee Collection Mechanism (CeFCoM) to ensure secure payments to authorized investment advisers and analysts. This optional mechanism differentiates registered entities from unregistered ones. Additionally, SEBI's 'SEBI Check' tool will help verify UPI handles and bank accounts, enhancing investor protection against fraud.
- Country:
- India
The Securities and Exchange Board of India (SEBI) has introduced the Centralized Fee Collection Mechanism (CeFCoM), encouraging investors to pay fees to registered investment advisers and analysts through this platform. SEBI emphasizes that CeFCoM offers a secure, transparent, and optional payment ecosystem, ensuring payments go to legitimate advisors only.
Operational from October 1, 2024, CeFCoM distinguishes registered advisers from unregistered ones, managed by BSE Ltd alongside MF Utilities India Pvt. Ltd. Investors can utilize various payment methods within CeFCoM, with more than Rs 5 Crore already processed by June 2025, according to SEBI's recent announcement.
In addition, SEBI has rolled out the 'SEBI Check' tool to validate UPI handles and bank account details before processing payments. This tool, available from October 2025, is set to assist investors in verifying the legitimacy of entities requesting funds, providing enhanced protection against fraudulent activities and cyber frauds.
(With inputs from agencies.)
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