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Sebi: Representative Image | (Photo: Shutterstock)
Market regulator Sebi on Friday announced rolling out a new system — Centralized Fee Collection Mechanism — to facilitate collection of fees by Investment Advisers (IAs) and Research Analysts (RAs) from their clients on an optional basis.
Under this mechanism, clients will pay fees to IAs/RAs, through a designated platform or portal administered by a recognised Administration and Supervisory Body (ASB), the regulator said in a circular.
The move came in response to the growing interest in the securities market and the need for greater transparency in fee payments.
The markets regulator said that BSE would specify the operational framework for the mechanism on or before September 23 and make the mechanism operational from October 1.
The mechanism has been co-created by BSE Ltd with the help of various stakeholders.
While using this mechanism is optional, Sebi asked ASB to take steps to encourage clients and the registered IAs and RAs to avail the services of this mechanism.
Further, registered IAs and RAs will encourage their clients to use this mechanism, it added.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First Published: Sep 13 2024 | 10:53 PM IST
