Context:
The Securities and Exchange Board of India (SEBI) is actively urging investors to use the Centralized Fee Collection Mechanism (CeFCoM) to make payments to SEBI-registered investment advisers and research analysts, enhancing security and transparency in financial transactions.
Key Highlights:
- Purpose: CeFCoM aims to prevent fraud and unauthorized fund collection by routing payments through a secure, centralized platform.
- Operational Since: October 1, 2024
Managed by BSE Ltd. in partnership with MF Utilities India Pvt. Ltd. - Features:
- Supports multiple digital payment modes: UPI, UPI Autopay, Net Banking, IMPS, NEFT, RTGS, Debit/Credit Cards, eNACH, and cheques.
- Helps investors confirm they are dealing with SEBI-registered entities, avoiding scams from unregistered advisors.
- Usage So Far:
- Over ₹5 crore in payments processed through CeFCoM as of June 10, 2025.
Upcoming Measures:
- ‘SEBI Check’ Tool (from October 1, 2025):
- A digital verification service to confirm the authenticity of UPI handles and bank account details before payment.
- Will use structured UPI handles with suffixes like
@valid, and category-specific codes (e.g.,brk,mf). - Verified UPI handles will display a green triangle with a thumbs-up icon.
- App Store Collaboration:
- SEBI plans to work with online platforms to ensure only verified investment apps are listed, further reducing risk of fraud.
