Mumbai: Markets regulator SEBI encourages investors to pay fees to their investment advisers and research analysts through the Centralized Fee Collection Mechanism (CeFCoM). In a statement on Thursday, SEBI said that CeFCoM is a secure and transparent payment ecosystem developed to ensure that investors pay fees only to SEBI-registered investment advisers and research analysts. This mechanism is optional.
CeFCoM helps distinguish registered investment advisers and research analysts from unregistered entities posing as such. It has been operational since October 1, 2024, and is managed by BSE Ltd. in association with MF Utilities India Pvt. Ltd.
Through CeFCoM, investors can pay fees using multiple payment modes such as Net Banking, Debit Card, UPI/UPI Autopay, IMPS/NEFT/RTGS, eNACH, Cheque, and Credit Cards. As of June 10, 2025, investors have paid over ₹5 crore in fees through CeFCoM, SEBI stated.
On Wednesday, the Securities and Exchange Board of India (SEBI) announced the launch of a new tool, ‘SEBI Check’, to validate UPI handles and registered bank accounts, ensuring secure payments by investors. The “Validated UPI Handles” and “SEBI Check” tools aim to enhance investor protection and combat deepfakes and cyber fraud. Investors can verify whether a UPI handle or bank account is registered before making any payment via ‘SEBI Check’.
Investors can authenticate UPI IDs either by scanning a QR code or by manually entering the UPI ID. For bank verification, they can confirm the bank account number and Indian Financial System Code (IFSC) of a registered intermediary.
The core of this new framework is a mandatory, structured UPI address for intermediaries, composed of a user-friendly name followed by a unique handle. For instance, the username will be a readable name chosen by the intermediary, followed by a suffix that clearly indicates their category—such as ‘brk’ for a stock broker or ‘mf’ for a mutual fund.
A valid handle will include a unique and exclusive identifier, “@valid”, combined with the name of the self-certified syndicate bank. These validated handles will be exclusively issued by the National Payments Corporation of India (NPCI) for fee collection by SEBI-registered intermediaries.
‘SEBI Check’ will be available to investors starting 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 the money for personal gain. This new framework is designed to proactively curb such fraudulent activities, allowing investors to easily identify legitimate SEBI-registered market intermediaries and make payments to them securely and efficiently.”
To address cyber frauds, deepfakes, and impersonation, SEBI stated that this new tool will boost investor confidence by enabling them to verify whether an intermediary asking for funds is registered. The SEBI Chairman added, “This innovative mechanism is set to significantly improve the safety and accessibility of financial transactions in the securities market by providing a verified and secure payment channel.”
He also mentioned that SEBI will collaborate with online app stores to ensure only validated apps for payment are displayed.
