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

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..... m 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 proceed ahead only after acknowledging the same. 3.2. The 'Risk disclosures' .....

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..... #8377; 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 in equity F&O during FY 2021-22. Annexure-II: Data Format A. Equity F&O Segment Transaction Cost (Rs.) Client Identifica tion No. Period Product Category Age Gender Income Group City PIN Code No. of transactions dur .....

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..... s 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 Period (Rs.) Realised Trading Profit/Loss excluding transaction charges during Period (Rs.) Brokerage + Clearing Fee Exchange Fee Stamp Duty SEBI turnove r Fee STT GST Period 1 <20 M <5Lacs Period 2 20-30 F 5-10L 30-40 Others 10-25L 40-50 Not sepec 25-50L 50-60 50-100L >60 >100L Not Available Not Available Notes: 1. Client-set: All Individual Clients (which includes HUF and NRIs; .....

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