CeFCoM explained: SEBI's centralised fee collection mechanism for Research Analysts

What CeFCoM is

CeFCoM stands for Centralized Fee Collection Mechanism for Investment Advisers and Research Analysts. SEBI introduced it through a SEBI circular dated 13 September 2024 as an optional way for clients to pay fees to SEBI-registered IAs and RAs. The fee is paid through a portal administered by the administration and supervisory body (ASB), which for RAs is BSE as RAASB. BSE set out the operating framework in BSE notice 20240923-8 dated 23 September 2024, and the mechanism became available from 1 October 2024.

The aim, as SEBI stated it, is to help investors tell registered advisers and analysts apart from unregistered ones. A client paying through CeFCoM knows the money is going to a registered entity's designated bank account.

A note on this post: AlphaQuark does not integrate with CeFCoM. We explain it here because RAs must tell clients about it, and because it is part of choosing how to collect fees. For the full picture of fee collection, see how to collect subscription payments as an RA.

Is CeFCoM mandatory?

No. The SEBI circular calls it optional, both for the RA and for the client. It also says the ASB and IAs/RAs should encourage clients to use it. Two obligations do apply to every RA, under the Master Circular for Research Analysts (6 February 2026):

• Your terms and conditions must give guidance on CeFCoM (para 1.9(h)). The standard MITC text in Annexure B tells clients that the optional centralised fee collection mechanism is available and can be used to pay fees.
• The investor charter in Annexure D tells investors about paying through banking channels, and the master circular's para 12 carries the CeFCoM provisions.

So you do not have to collect fees through CeFCoM, but your clients must be told it exists.

How it works

Based on the BSE framework:

Payment modes listed in the BSE framework

• Net banking, debit card, UPI and credit card, through a payment link.
• NEFT, RTGS, IMPS and cheque, through a virtual account number.
• Auto-debit through eNACH or UPI Autopay.

Phases

BSE's framework rolled CeFCoM out in phases. Phase 1, from 1 October 2024, covered IAs and RAs who do not run a fully digital "fintech" flow, meaning end-to-end digital onboarding, service delivery and payment. Phase 2, for RAs with a fintech flow, was to follow with modalities to be told separately. We could not confirm from BSE's published notices whether Phase 2 is now live. Check the current position with BSE before deciding.

Advantages and limits

The BSE framework lists these advantages: several payment modes, intimation of due dates, scheduling of payments, a client master and payment tracking. For clients, the main benefit is the assurance that they are paying a registered RA.

Things to consider before you adopt it:

• It handles the payment, not the rest of the sequence. SEBI's rule that no fee is charged before KYC and consent to your terms and MITC (para 1.12) still applies. You need your own onboarding before you raise a fee request.
• Access to your service is separate. If you deliver research through Telegram, WhatsApp or an app, you still need to connect a confirmed payment to access, and remove access when a plan ends.
• Fee rules still apply. The ₹1,51,000 per family per year limit for individual and HUF clients, the one-year advance limit and proportionate refunds on early termination apply whichever payment route the client uses.
• Charges. Check any charges with BSE directly. We have not stated them here because we could not verify them from a primary source.

What to put in your terms

At a minimum, your terms and MITC should tell clients that the optional centralised fee collection mechanism is available and that they may use it to pay fees. If you have enrolled, add how to pay through it. If you have not enrolled, say which other banking channels you accept. Review the wording with your compliance adviser so it matches para 1.9(h) and Annexure B. See our guide to what the agreement and MITC must contain.

Where to get the official details

• SEBI circular dated 13 September 2024 — the SEBI circular introducing CeFCoM.
• BSE notice 20240923-8 dated 23 September 2024 — the BSE framework, with a process flow and user manual in its annexures.
• The Master Circular for Research Analysts (6 February 2026), para 12, para 1.9(h) and Annexures B and D.
• BSE's RA/IA fee collection desk: [email protected].

Where AlphaQuark fits

AlphaQuark does not integrate with CeFCoM. It runs KYC and MITC e-sign before payment, collects subscription payments through its own payment gateway integrations, and adds and removes subscribers on Telegram or WhatsApp in line with each plan. If you choose CeFCoM for collection, the onboarding and delivery steps still need to be handled. See the RA platform and RA compliance calendar.