SEBI targets cyber fraud with measures, investor awareness campaign

Soon after announcing the Unified Payments Interface (UPI) verification mechanism, the Securities and Exchange Board of India (SEBI) has publicised its lesser-known centralised payment mechanism to help investors route payments to registered investment advisers and research analysts.

The Centralised Fee Collection Mechanism for Investment Advisers and Research Analysts (CeFCoM) is an optional mechanism managed by BSE in association with MF Utilities India.

The mechanism has been operational since October 1, 2024.

Investors have the option of multiple payment modes in CeFCoM such as Net Banking, Debit Card, UPI/UPI Autopay, IMPS/NEFT/RTGS, eNACH and even through Cheque and Credit Card. As on June 10, 2025, more than ₹ 5 crore in fees have been paid by investors through CeFCoM, the securities regulator said.

The announcement comes on the heels of new UPI verification mechanism launched by SEBI to safeguard investor funds in capital market transactions. The UPI verification system will be effective from October 1, 2025.

SEBI Chairman Tuhin Kanta Pandey said: “This is part of our broader commitment to bring enhanced transparency and security to retail investors.” The move which is going to impact intermediaries and not investors, will cover entities including nearly 9,000 SEBI-registered intermediaries, under the new system.

What’s next

There are already existing measures in place such as the list of white-listed apps on the securities exchange websites, the SEBI chairman said.

The regulator is currently working with Apple App Store and Android Play Store to ensure that only validate applications of intermediaries are available on smartphone application stores, Pandey said during the press conference.

Going forward, once finalised, only verified apps will be downloadable from smartphone play stores, he added.