Statutory Risk Disclosure

Trading and investing in the Indian securities market involves substantial risk of capital loss. Prior to executing transactions or subscribing to research, you must thoroughly evaluate your financial situation.

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1. Market Volatility & Capital Loss

• Security prices fluctuate continually based on macroeconomic conditions, corporate earnings, interest rates, and domestic or global geopolitical events.
• An investment can decline in value substantially. You should only commit risk capital that you can afford to lose without compromising your day-to-day liquidity or living standard.

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2. Derivative Trading Risks (Futures & Options)

• High Leverage: Futures and options contracts require initial margin that represents only a fraction of the total notional contract value. While leverage magnifies gains, it equally magnifies downside losses.
• Rapid Premium Decay: Option buyers face time decay (theta), which accelerates as contracts approach weekly or monthly expiry. Out-of-the-money options can expire completely worthless, resulting in 100% loss of the premium paid.
• SEBI Study Notice: Per SEBI's published analytical study on individual investor behavior in the equity derivatives (F&O) segment:
  • 9 out of 10 individual traders in the equity F&O segment incurred net financial losses.
  • On average, loss-makers registered net trading losses close to ₹50,000 per year.
  • Active traders incurred an additional 15% to 28% of net trading losses in transactional and advisory overheads.

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3. Stop-Loss & Slippage Limitations

Reference stop-loss levels and targets provided in research publications are directional analytical markers. During periods of extreme market volatility, gap openings, or diminished liquidity, exchange execution prices may differ materially from theoretical reference levels (slippage).