Research Analysts (RAs) may receive complaints against them due to impersonation by some other entity. These complaints must be handled properly, including adjustment in complaint data and closure after due process. This article provides a comprehensive technical analysis of handling impersonation complaints.
Regulatory Basis
Impersonation Complaint Provision
The Investor Charter for Research Analysts includes a specific provision for impersonation complaints:
"In case of any complaints received against the RA due to impersonation of the RA by some other entity, the RA may adjust the number of such complaints from total number of received/resolved complaints while preparing the above table. Further, RA must close such impersonation related complaints after following the due process as specified by SEBI/RAASB."
What is an Impersonation Complaint?
Definition
An impersonation complaint is a complaint received against an RA where the actual perpetrator is another entity impersonating the RA.
Examples
- Fraudster using the RA's name
- Fake website posing as the RA
- Unauthorized use of the RA's brand
- Identity theft of the RA
Handling Impersonation Complaints
Step 1: Identify Impersonation
- Identify that the complaint is due to impersonation
- Verify that the RA is not responsible
Step 2: Document Evidence
- Document evidence of impersonation
- Collect relevant information
Step 3: Report to Authorities
- Report to SEBI/RAASB
- Report to law enforcement if necessary
Step 4: Adjust Complaint Data
- Adjust the number of impersonation complaints from total received/resolved complaints
- Maintain records of adjustment
Step 5: Close Complaint
- Close the impersonation complaint
- Follow due process as specified by SEBI/RAASB
Adjustment of Complaint Data
How to Adjust
| Original Data | Adjustment | Adjusted Data |
|---|---|---|
| Total complaints received: 10 | Impersonation complaints: 3 | Adjusted received: 7 |
| Total complaints resolved: 8 | Impersonation complaints resolved: 3 | Adjusted resolved: 5 |
Recording the Adjustment
- Maintain a separate record of impersonation complaints
- Document the adjustment
- Explain the adjustment if requested
Due Process for Closure
1. Investigation
- Conduct an investigation
- Confirm impersonation
2. Documentation
- Document the investigation
- Maintain records
3. Reporting
- Report to SEBI/RAASB
- Provide evidence
4. Closure
- Close the complaint
- Update complaint data
Common Compliance Gaps
1. Not Adjusting Data
Some RAs do not adjust complaint data for impersonation.
Solution: Adjust data as per the provision.
2. Not Closing Complaints
Some RAs do not close impersonation complaints.
Solution: Close complaints after due process.
3. No Documentation
Some RAs do not document impersonation.
Solution: Maintain documentation.
4. Not Reporting
Some RAs do not report impersonation.
Solution: Report to SEBI/RAASB.
Consequences of Not Handling Impersonation
1. Inflated Complaint Data
Complaint data will be inflated.
2. Regulatory Scrutiny
SEBI may question inflated complaint data.
3. Reputational Damage
Non-handling of impersonation can damage reputation.
Conclusion and How Anuj Desai & Associates Can Help
Impersonation complaints must be handled properly.
Anuj Desai & Associates offers specialized services to help RAs handle impersonation complaints:
- Identification and investigation
- Documentation and reporting
- Data adjustment
- Compliance audit and advisory
Contact us today to ensure your impersonation complaints are handled properly. Our team will guide you through the process.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Readers are advised to consult qualified professionals for legal and compliance matters. Anuj Desai & Associates is a SEBI compliance consulting firm based in India.