How may I actually collect my fees — is cash allowed, and what is CeFCoM?
In force
Cash is not allowed. Fees come by cheque, bank transfer, UPI or another specified mode.
CeFCoM is the Centralised Fee Collection Mechanism run by BSE, live since 1 October 2024. Clients pay through a central portal instead of paying you directly.
Using CeFCoM is optional. Telling your clients it exists is not — your terms and conditions must give them guidance on it.
There is no rule requiring a separate or escrow bank account for client fees, and no rule that payment must come from the client's own account. But every bank account you use to receive fees has to be declared in your half-yearly report to RAASB.
These fee rules bind you only for individual and HUF clients who are not accredited investors. With non-individual clients, institutions and accredited investors, terms are whatever you agree.
What SEBI says, word for word
MITC, clause 12(iv)“Fees to RA may be paid by the client through any of the specified modes like cheque, online bank transfer, UPI, etc. Cash payment is not allowed.”Source: Most Important Terms and Conditions, Annexure B to SEBI Master Circular No. HO/38/12/11(1)2026-MIRSD-POD/I/4360/2026, dated February 6, 2026 Open document ↗
Master Circular, ¶12.5“Though the mechanism is optional, ASB, in the interest of investors, shall take steps to encourage clients and the registered IAs and RAs to avail the services of this mechanism.”Source: SEBI Master Circular No. HO/38/12/11(1)2026-MIRSD-POD/I/4360/2026, dated February 6, 2026, on CeFCoM Open document ↗
Master Circular, ¶1.9(d)“The fee related provisions such as fee limit, modes of payment of fees, refund of fees, advance fee, breakage fees shall only be applicable in case of their individual and HUF clients (provided these clients are not accredited investors).”Source: SEBI Master Circular No. HO/38/12/11(1)2026-MIRSD-POD/I/4360/2026, dated February 6, 2026 Open document ↗