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SEBI has issued a consultation in which it has proposed to introduce a portal where investors can pay advisory fees to registered investment advisor (RIAs) and research analysts (RAs).
Sharing the rationale, SEBI said, “This would also help investors identify, isolate and avoid unregistered entities, who would be unable to access this closed ecosystem. Over the years, many unregistered entities have misled investors in breach of the IA and RA Regulations. There is a need to proactively restrict their proliferation.”
It said, “It is proposed to bring in a separate mechanism for fee collection by IAs and RAs. Payment of fees to IAs and RAs through the proposed mechanism shall also provide clarity to investors regarding the registration status of the entity. It will also instil confidence among investors that fees are being paid to a SEBI registered IA/RA and will motivate them to approach only registered IAs/RAs for all their investment advisory/research service needs.”
Investors will be able to pay through net banking, debit card and UPI. They can also do NEFT, RTGS, NEFT or pay through cheque.
