The National Stock Exchange (NSE) on June 14, 2023, issued a circular regarding the Risk disclosure with respect to trading by individual traders in Equity Futures & Options Segment.
The following clarifications to Frequently Asked Questions (FAQ) are issued:
• Whether the “Risk disclosures” should be displayed and acknowledgment to be obtained once a day upon first login, or the same should be displayed on every login?
The mandated pop-up regarding “Risk disclosures” shall be displayed at the time of each login done by the clients (Individual category).
• If the client has registered for both Equity and Equity F&O segments. Whether the “Risk Disclosure” to be displayed only when the client is placing trades in Equity F&O Segment or it should be displayed upon login even if the client is intending to trade only in the capital market segment in that login session?
If the client has registered for both Equity and Equity F&O segments, the “Risk Disclosure” shall be displayed at the time of login itself, irrespective of the segment in which the client trades during that session. However, if the client has registered only for the Equity segment, then the same is not applicable.
• Whether the “Risk disclosures” to be displayed at the time the client is onboarding and registering for the Equity F&O Segment?
The “Risk disclosures” shall be displayed at the time of onboarding and the client is opting/ registering for the Equity F&O segment. This requirement is in addition to the mandated display at the time of each login.
• Whether the provisions of this circular be applicable to brokers who don't provide online trading (IBT/ STWT) facilities to clients?
The “Risk disclosures” shall be displayed on the website of the trading members. However, the requirement of a pop-up regarding “Risk disclosures” at the time of login done by the client is not applicable if the trading member is not providing online trading (IBT/ STWT) facility to clients.
• Whether Risk disclosure needs to be displayed only for Equity F&O clients or for all clients?
The “Risk disclosures” shall be displayed for all clients (Individual Category) registered in the Equity F&O segment.
[Circular No. 52/2023]
