The Bombay Stock Exchange (BSE) on September 23, 2024, issued a framework for a Centralized Fee Collection Mechanism (Cefcom) for Investment Advisers (Ia) & Research Analysts (Ra).
The following has been stated: -
•SEBI has directed BSE Limited - Administration and Supervisory Body (ASB) for IA and RA i.e. IAASB and RAASB to operationalise the CeFCoM and specify the operational framework in this regard.
•The operational framework has been provided as follows:
1.IAs/RAs shall provide details of their designated bank account/s (maximum two accounts) to ASB in which payment of fees from its clients shall be received. The designated bank account/s shall be exclusively used for collecting fees from clients for availing their services as an IA/ RA. One of the designated bank accounts shall serve as the default bank account for the collection of fees. IA/RA shall have an option to change the default account.
2.CeFCoM shall be operationalised in two phases. In the first phase, it shall be operationalized for IAs/RAs having non-fintech flow i.e. IAs/RAs who do not have an end-to-end digital process through website/app/or such other means for client on-boarding, delivery of services to clients, payments of fees and other related processes. CeFCoM Phase 1 shall be operational with effect from October 01, 2024.
3. All enlisted IAs/RAs are encouraged to avail of the proposed mechanism and enroll under CeFCoM. IAs/ RAs are also advised to spread awareness about CeFCoM among their clients and encourage them to avail of this mechanism. IAs/RAs may educate their clients about the advantages of the mechanism.
4. The user manual for IAs/RAs for availing the services of this mechanism is provided in Annexure—II.
The detailed notification is given in the document below.
[Notice No. 20240923-8]
