Sebi introduces risk disclosure framework for individual traders in equity derivative segment

From July 1, all stockbrokers in India will have to display the risk disclosures for individual traders trading in the Futures & Options segment on their websites and inform their customers in the specified manner. After logging into their accounts, clients may be prompted to read the ‘risk disclosures’, which should be displayed prominently, covering at least 50% of the screen. Additionally, Qualified Stock Brokers have been asked to keep the Profit and Loss data of their clients, and all stock exchanges and depositories to display the risk disclosures with a link to a study conducted by Sebi.