Stay Alert: Beware of Impersonators

When it comes to your finances, being cautious is always a smart choice.

Recently, there have been several cases where impostors contacted investors by posing as SEBI-registered Investment Advisers (RIAs). These individuals collected money under the pretext of investing on behalf of investors and then disappeared—causing financial loss to the victims and reputational damage to the genuine RIA whose identity was misused.

To protect yourself, it is crucial to verify that you are dealing with an authentic SEBI Registered Investment Adviser and not with a fraudulent or unregistered person.

How Fraudsters Mislead Investors

Fraudsters, impersonators, scamsters, and unregistered individuals constantly come up with new tactics to deceive people. Their approach generally falls into one of these patterns:

• They create fake profiles on platforms like Twitter, Telegram, Instagram, and Facebook, share manipulated screenshots showing high returns, and attract investors with promises of unrealistic gains

OR

• They connect with people through calls, emails, or messages pretending to be RIAs, claiming to offer high-return advice and asking for money—either as an investment amount or advisory fee.

OR

• They duplicate the profiles of well-known SEBI-registered analysts/advisers on social media, share fabricated performance updates, or contact you directly to make you believe you’re interacting with a legitimate advisor. They misuse the reputation of genuine RIAs to mislead unsuspecting investors.

Do not act on investment tips or advice from such individuals.

You risk losing your hard-earned money. Never transfer funds—whether for investment or fees—to anyone whose authenticity is not verified. Such money is almost impossible to recover.

Impersonation and financial fraud are widespread issues and not limited to RIAs. There have been instances where fraudsters even pretended to be SEBI officials to extort money from investors. SEBI has issued a warning on this matter through Press Release PR No. 16/2021, and the Reserve Bank of India (RBI) has also released a booklet detailing common fraud techniques.

What SEBI Regulations Require

• Anyone offering investment advice must be registered with SEBI as an Investment Adviser. You can verify these details on the SEBI and BSE websites.
• A formal Investment Advisory Agreement must be signed between the RIA and the client before any fee is paid or advice is given.
• RIAs are required to conduct a risk profiling assessment before providing any recommendation.
• An RIA cannot hold client funds.
• RIAs are prohibited from executing transactions on your behalf or accepting Power of Attorney.
• SEBI allows only two types of fee structures: Fixed Fee – capped at ₹1.51 lakh per year across all RIA services. | Asset-Based Fee – capped at 2.5% of the assets under advice annually (combined across all services).
• Profit-sharing arrangements between clients and RIAs are strictly prohibited.
• SEBI has also advised investors to deal exclusively with SEBI-registered RIAs and Research Analysts (Press Release PR No. 112/2016).
• The Reserve Bank of India (RBI) has also published a booklet on Modus Operandi of Financial Fraudsters.

You Are Likely Dealing With a Fraudster If:

• The person is not registered with SEBI as an Investment Adviser.
• They provide advice without signing an advisory agreement.
• They ask you to transfer investment money to their personal or business bank account. RIAs are only allowed to receive advisory fees, not investment amounts.
• They guarantee high or assured returns.
• They propose profit-sharing models—this is not permitted by SEBI.
• They charge unreasonably high fees, such as ₹2 lakh for advising on a ₹10 lakh portfolio. Fees are strictly capped as per SEBI guidelines.

Precautions You Must Take

• Verify that you are interacting with a genuine RIA before sending money or acting on advice.
• Never engage with unregistered individuals.
• Request the person’s SEBI registration number.
• Confirm their details directly from the SEBI website and insist that they contact you only through the registered email ID or phone number listed there.
• Prefer a face-to-face meeting or a scheduled call before onboarding an adviser or making any payment.

If You Are My Client (or Considering Consulting Me)

• I will execute an Investment Advisory Agreement with you before accepting any fee.
• I will conduct a detailed risk-profiling exercise before offering advice.
• I will never ask you to send investment funds to my account—I do not invest on behalf of clients.
• As per SEBI rules, the only financial transaction between us will be the advisory fee.
• Fee requests will only be sent from my official email address. I do not send payment links through social media.
• I do not have any mobile apps offering advice in my name.
• I do not provide advice on third-party platforms such as Smallcase.

If You Are Already My Client, Please Be Alert If You Receive:

• A payment request from a social media platform claiming to be me. Fake accounts are easy to create.

OR

• A fee request sent through Twitter, Facebook, Instagram, Telegram, etc. I request fees only via official email (with occasional WhatsApp reminders referencing that email).

OR

• A payment request that appears unusual or inconsistent with previous communication.

OR

• A message that seems like it’s from me but uses unfamiliar tone or writing style. Email spoofing is becoming increasingly common.

Important (For UPI Payments):

Scammers can copy my name, photo, or create UPI IDs that look similar to the real one. Always double-check the exact UPI ID and source before transferring any amount.

There is no way to list all possible suspicious scenarios. If something feels off, please call me directly before proceeding.

I am not a cybersecurity expert, and fraudsters continuously evolve their techniques. Please stay alert and take digital safety seriously.

Stay Vigilant—Being Extra Cautious Can Save You

I sincerely hope that you remain protected and never become a victim of financial fraud.