Risk disclosure with respect to trading by individual traders in Equity Futures & Options Segment
Summary
This circular mandates stock brokers to display specific risk disclosures regarding equity Futures & Options trading on their websites and to clients. It requires Qualified Stock Brokers to maintain and retain client Profit and Loss data for at least five years in a prescribed format. The provisions apply to all recognized stock exchanges, depositories, and stock brokers with an effective date of July 1, 2023.
Text
all stock brokers shall display the ‘Risk disclosures’ given at Annexure-I on their websites and to all their clients
clients may be prompted to read the ‘Risk disclosures’ (which may appear as a pop-up window upon login) and shall be allowed to proceed ahead only after acknowledging the same
The ‘Risk disclosures’ shall be displayed prominently, covering at least 50 percent area of the screen
All Qualified Stock Brokers (QSBs) shall maintain the Profit and Loss (P&L) data of their clients on continuous basis as per the format given at Annexure-II. The P&L data of the clients shall be retained for at least 5 years
bring the provisions of this circular to the notice of their members / participants and also disseminate the same on their websites
display the ‘Risk disclosures’ on their respective websites, with a link to study conducted by SEBI
The provisions of this circular shall come into force with effect from July 01, 2023
This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992
Source: SecMarx — Risk disclosure with respect to trading by individual traders in Equity Futures & Options Segment. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.