Mandatory Risk Disclosure
Important regulatory risk disclosure mandated by SEBI for all individual traders dealing in Equity Futures & Options (F&O) segment.
Risk Disclosure Document: Equity F&O Segment
Based on the SEBI Study on "Analysis of Profit and Loss of Individual Traders dealing in equity Futures and Options (F&O) Segment" dated January 25, 2023 (FY 2021-22):
9 out of 10 individual traders in equity F&O segment incurred net losses.
On average, loss makers registered net trading losses 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 profits, incurred 15% to 50% of such profits as transaction costs.
* Publication of these disclosures is mandatory under SEBI Circular No. SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/79 dated May 19, 2023. Investors are requested to acknowledge and read the above metrics carefully before initiating derivative transactions.
Risk Management (RMS) Policy
At Shri Venkatesh Stock Broker Services, we enforce strict Risk Management checks. Clients trading in derivatives are required to provide 100% upfront margins (SPAN + Exposure) prior to initiating position buys or sells. Leverage is provided in compliance with exchange guidelines.
Investor Advisory
We urge investors to carefully consider their risk tolerance, capital adequacy, and derivatives knowledge. Futures and options are highly leveraged derivative products that can lead to losses exceeding your initial capital if market positions move adversely.