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In order to make sure that investors pay fees only to RIAs and RAs, SEBI has announced the launch of a payment platform for them to collect fees. The regulator said that this has been done to create a closed and transparent payment ecosystem. The platform will be called Centralized Fee Collection Mechanism (CeFCoM) for RIAs and RAs.
The new platform will be administered by a recognized Administration and Supervisory Body (ASB) which will be designated by the regulator.
The platform is optional for clients. However, the regulator will ask the ASB to take steps to encourage the clients of RIAs and RAs to use this platform. The RIAs and RAs are also asked to encourage their clients to use this platform.
The platform has been co-created by BSE with the help of various stakeholders.
In terms of timeline, BSE will specify the operational framework for the platform by Sept 23 and will make the mechanism operational by Oct 1.
