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In a significant step towards safeguarding investors from financial fraud and unauthorized fund collections, the Securities and Exchange Board of India (SEBI) is urging market participants to make payments to investment advisers and research analysts through the Centralized Fee Collection Mechanism (CeFCoM). While the facility is optional, SEBI emphasizes its benefits in enhancing transparency, security, and trust in the investment advisory ecosystem.
Launched on October 1, 2024, CeFCoM is operated by BSE Ltd. in collaboration with MF Utilities India Pvt. Ltd. It allows investors to pay fees using a variety of digital modes including Net Banking, UPI/UPI Autopay, Debit/Credit Cards, IMPS/NEFT/RTGS, eNACH, and even cheques. As of June 10, 2025, investors have paid over INR 5 crore in fees through CeFCoM, SEBI revealed in a statement.
The initiative helps investors clearly differentiate between SEBI-registered advisers and analysts and unregistered entities posing as such a critical distinction in a market where fraudulent actors often deceive retail investors through misleading schemes and payment links.
Further strengthening this framework, SEBI has announced the rollout of a digital tool called ‘SEBI Check’, going live from October 1, 2025. This tool enables investors to verify the authenticity of UPI handles and bank account details before making payments. UPI IDs can be validated either by scanning QR codes or entering the ID manually, while bank details can be cross-checked using account numbers and IFSC codes.
At the heart of this ecosystem is a new structured UPI handle system. Registered intermediaries will use UPI IDs that include readable usernames followed by category-specific suffixes like ‘brk’ for brokers or ‘mf’ for mutual funds and the ‘@valid’ tag issued by the National Payments Corporation of India (NPCI). These handles will feature a green triangle with a thumbs-up icon, offering visual confirmation of legitimacy.
SEBI Chairman Tuhin Kanta Pandey said, “Unregistered entities have been misusing digital platforms to siphon off investor funds. This new mechanism aims to create a verified and secure payment channel that fosters investor confidence and financial safety.”
To further reinforce digital trust, SEBI also plans to collaborate with online app stores to ensure that only validated apps used for investment-related payments are listed.
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