The implementation of the Centralized Fee Collection Mechanism for Investment Advisors (IAs) and Research Analysts (RAs), aimed at creating a more transparent fee payment process. Here’s a summary of the key points:
The mechanism addresses the growing demand for a system that ensures fees are only paid to registered IAs and RAs, protecting investor interests.
After public consultation and stakeholder discussions, the “Centralized Fee Collection Mechanism (CeFCoM)” has been created to streamline the fee collection process.
Under this mechanism, clients will pay fees to IAs/RAs through a designated portal managed by a recognized Administration and Supervisory Body (ASB).
BSE Limited has co-developed this system with various stakeholders and is responsible for specifying the operational framework by September 23, 2024, with the system becoming operational from October 1, 2024.
Though the mechanism is optional, both the ASB and registered IAs/RAs are encouraged to promote the use of this mechanism among clients to enhance transparency and security in fee transactions.
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