Risk disclosure with respect to trading by individual traders in Equity Futures & Options Segment

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..... due diligence and risk appetite, it is important to empower them with detailed information about the risks associated with trading in derivatives. 2. With a view to facilitating informed decision making by the investors trading in derivatives segment, it has been decided to introduce Risk disclosures with respect to trading in equity Futures Options (F O) segment. 3. Accordingly, all stock brokers shall display the Risk disclosures given at Annexure-I on their websites and to all their clients in the manner as specified below: 3.1. Upon login into their trading accounts with brokers, the clients may be prompted to read the Risk disclosures (which may appear as a pop-up window upon login) and shall be allowed to .....

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..... VATIVES 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses. On an average, loss makers registered net trading loss close to ₹ 50,000. Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs. Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost. Source: 1. SEBI study dated January 25, 2023 on Analysis of Profit and Loss of Individual Traders dealing in equity Futures and Options (F O) Segment , wherein Aggregate Level findings are based on annual Profit/Loss incurred by individual traders .....

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..... Others 10-25L Stock Options 40-50 Not sepec 25-50L 50-60 50-100L .....

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..... ontract- B purchased in March 2019, sold in April 2019/ settled on expiry - will not be considered 6. Contracts resulting in physical delivery of stocks may be excluded. 7. For PIN Codes - correspondence address may be considered. B. Cash Segment Transaction Cost (Rs.) Client Identific ation No. Period Age Gender Income Group City PIN Code No. of transactions during Period (Buy+Sell) Daily Average holding value during Period (Rs.) Max. holding value during .....

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..... 50-60 50-100L 60 100L .....

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