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SEBI will introduce a portal where investors can pay advisory fees to registered investment advisors (RIAs) and research analysts (RAs).
The idea is to help investors identify registered advisors and analysts who have access to this closed ecosystem and avoid falling prey to unregistered entities.
SEBI said, “The mechanism shall facilitate investors for availing the services and making the payment of fees only to registered IAs and RAs thus creating trust in the ecosystem. Given this, the mechanism shall give recognition to registered IAs and RAs and help investors differentiate them from unregistered entities acting as IAs and RAs. The mechanism has been kept optional based on public consultation.”
SEBI clarified that mechanism will be cost neutral to the clients of RIAs and RAs.
