SEBI new fees collection mechanism

Date: 10 October 2023 

Category Tagging:  SEBI-Regulations 

SEBI has recently released a consultation paper that revolves around a novel proposition. It aims to establish a structured ecosystem for fee collection by its registered Investment Advisers (IAs) and Research Analysts (RAs)

The primary goal is to instill a higher degree of assurance among investors. With this system in place, investors can confidently know that their payments are directed only to SEBI-registered IAs and RAs. By excluding unregistered entities from this ecosystem, it indirectly shines a spotlight on them, prompting investors to steer clear.

In this new system, all payments made by clients will be processed through a designated platform, monitored by a SEBI-recognised body. With this, SEBI aims to prevent unregistered IAs and RAs from misleading investors.

The new system is designed to facilitate payments through various online modes, including payment links, as well as methods such as NEFT, RTGS, IMPS, and cheques, via a virtual account number. Once the payment reaches the unified platform, the supervisory body will then transfer the collected fee to the designated account of the respective IA or RA.

Read SEBI Consultation paper at:   SEBI Fees

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