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Informist, Thursday, Jun. 12, 2025

NEW DELHI – Investors have the option of paying fees to their investment advisers and research analysts through the secure centralised fee collection mechanism for the two market intermediary categories, the Securities and Exchange Board of India said Thursday in a press release. The market regulator encouraged investors who are clients of SEBI-registered investment advisers and research analysts to use this payment ecosystem even though it is an optional mechanism, it said.

According to SEBI, the centralised fee collection mechanism is secure and transparent since it differentiates registered investment advisers and research analysts from unregistered entities or imposter entities claiming to the registered.

SEBI Wednesday announced the setting up a new validation mechanism for payment of investment funds by investors to market intermediaries. Under this mandatory mechanism, to be implemented from Oct. 1, a market intermediary will have to get its bank account number, Indian Financial System Code number of bank where it has its account, and its unified payment interface address validated with SEBI which will then put it up in an app or a tool called 'SEBI Check'. An investor can use this tool to verify the authenticity of the market intermediary before transferring investment funds.

But investment advisers and research analysts collect only fees and not investment funds, and so the new validation mechanism has been kept optional for them, SEBI Chairman Tuhin Kanta Pandey said in a press conference Wednesday. He said the market regulator will take a call later whether to make it mandatory for investment advisers and research analysts.

SEBI said in Thursday's press release that the centralised fee collection mechanism for investment advisers and research analysts has been in operation since Oct. 1, 2024, and is managed by BSE in association with MF Utilities India.  End

Reported by Rajesh Gajra

Edited by Ashish Shirke

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