The Centralised Fee Collection Mechanism, or CeFCoM, lets clients of SEBI registered research analysts and investment advisers pay fees through a channel run by BSE. SEBI set it up through a circular dated 13 September 2024, and it became operational from 1 October 2024. Using it is optional, but every RA and IA must explain it in client terms and encourage clients to use it.
What CeFCoM is
CeFCoM is a centralised mechanism for collecting the fees that clients pay to RAs and IAs. It is run by BSE, which is also the RAASB and IAASB that supervises both groups. It gives clients a central route, run by the supervising body, for paying a registered RA or IA.
The mechanism comes from SEBI circular SEBI/HO/MIRSD/MIRSD-POD-1/P/CIR/2024/120 dated 13 September 2024. BSE notice 20240923-8 confirmed that it would be operational from 1 October 2024. The master circulars of 6 February 2026 carry the requirement forward, so it applies to every RA and IA today, whenever they registered.
Is CeFCoM mandatory
No. Clients may choose to pay through CeFCoM, and RAs and IAs may still receive fees through other traceable banking channels. What is mandatory is the disclosure: client terms must include guidance on CeFCoM, and the RA or IA must encourage clients to use it.
For RAs this sits in paras 1.9(h) and 12 of the master circular and clause 13 of Annexure B. For IAs it sits in paras 1(ii)(e) and 15 of the master circular. Both master circulars are dated 6 February 2026.
Where CeFCoM fits among payment rules
CeFCoM sits alongside the general rules on fee payments. The table summarises what applies to every RA and IA. CeFCoM does not replace any of these rules. It is one more route a client may choose, and the other banking channels you accept remain valid as long as they are traceable and appear in your terms.
| Payment rule | What it means |
|---|---|
| Traceable channels only | Cheque, demand draft, NEFT, RTGS, IMPS or UPI |
| No cash | Cash payment is not allowed |
| @valid UPI ID | Obtain and display a validated UPI ID, available to investors from 1 October 2025 |
| CeFCoM | Optional route run by BSE, which terms must explain and encourage |
| Fee caps | ₹1,51,000 per year per family, or 2.5% of AUA for IAs in AUA mode |
What to write in your terms and payment page
Add a short CeFCoM paragraph to the client terms and to the payment page. It should say that the client may pay fees through BSE's Centralised Fee Collection Mechanism, that this option is available in addition to the other banking channels you accept, and that you encourage its use.
Keep the wording plain and avoid implying that CeFCoM makes the service endorsed or guaranteed in any way. The standard disclaimer that registration, enlistment and certification do not guarantee performance or assure returns still applies. Keep the same wording in the terms, on the payment page and in onboarding emails.
- A CeFCoM paragraph in the terms or MITC
- The same guidance on the payment or pricing page
- The @valid UPI ID and QR code alongside other banking options
- No cash or personal wallet option
CeFCoM does not change fee limits
Paying through CeFCoM does not alter how much you can charge. RAs remain capped at ₹1,51,000 per year per family for individual and HUF clients, and IAs remain within the AUA or fixed fee limits. Advance fees still cannot exceed one year, and the refund rules on early termination still apply.
How CeFCoM shows up in audits
Because the CeFCoM guidance is a required term, an auditor checking your client terms and website will look for it. A missing paragraph is a small gap, but it is an easy finding to avoid. Keep a dated copy of the terms page that shows the CeFCoM text, along with the rest of your client documents, for the five year record period.
Next steps
Check your terms, payment page and onboarding emails for CeFCoM wording, and make them match. For a repeatable way to check client documents against rules like this, XDQ Labs offers XDQ xAgents for RAs and IAs (/product/xfintech-agents/). This guide is general information, not legal or investment advice. Confirm with your compliance officer.
Frequently asked questions
What is CeFCoM in SEBI?
CeFCoM is the Centralised Fee Collection Mechanism run by BSE for fees paid to research analysts and investment advisers. It was set up by a SEBI circular dated 13 September 2024 and became operational from 1 October 2024.
Is CeFCoM mandatory for research analysts?
No, using CeFCoM is optional for clients. However, RAs and IAs must include guidance on CeFCoM in their client terms and encourage clients to use it. That disclosure is the mandatory part.
Can clients pay RA or IA fees in cash?
No. Fees may be received only through traceable banking channels such as cheque, demand draft, NEFT, RTGS, IMPS or UPI. RAs and IAs must also obtain and display a validated @valid UPI ID.
Does CeFCoM change the RA or IA fee limit?
No. Fee limits stay the same whatever the payment route: ₹1,51,000 per year per family for RA clients, and for IAs either 2.5% of AUA or ₹1,51,000 per year per family, for individual and HUF clients.
Sources
- Master Circular for Research Analysts, 6 February 2026, SEBI, 2026
- Master Circular for Investment Advisers, 6 February 2026, SEBI, 2026
- RAASB and IAASB enlistment portal, BSE Limited, 2026
- SEBI (Research Analysts) Regulations, 2014, amended up to 10 October 2026, SEBI, 2026
- SEBI (Investment Advisers) Regulations, 2013, amended up to 25 November 2025, SEBI, 2025
