 |
|
The article is primarily a disclosure and advisory notice for investors using the Upstox platform. It begins by providing essential regulatory information, including SEBI registration numbers, contact details for compliance officers, and registered addresses for Upstox Securities Pvt. Ltd. and RKSV Commodities India Pvt. Ltd. This information is crucial for investors seeking to verify the legitimacy of the platform and understand who to contact in case of concerns or grievances. The inclusion of CIN (Corporate Identity Number) further enhances transparency and allows for easy tracking of the company's registration details. The article also explicitly states that Upstox Securities Private Limited is a wholly-owned subsidiary of RKSV Securities India Private Limited and RKSV Commodities India Private Limited is an associate of RKSV Securities India Private Limited, clarifying the corporate structure. The document emphasizes the importance of filing complaints through the SEBI SCORES portal, outlining the mandatory details required for successful registration and highlighting the benefits of effective communication and speedy redressal of grievances. The investors are strongly encouraged to carefully read the Risk Disclosure Document as prescribed by SEBI, along with the Terms of Use and Privacy Policy, underscoring the responsibility of investors to understand the terms and conditions governing their investment activities.
Following the initial regulatory disclosures, the article delves into specific risk warnings related to investment in the securities market, prominently stating that investments are subject to market risks and urging investors to carefully read all related documents before investing. A significant portion of the disclosure focuses on the risks associated with trading in equity Futures and Options, citing statistics that 9 out of 10 individual traders in this segment incur net losses. The disclosure quantifies these losses, stating that loss makers registered net trading losses close to ₹ 50,000 and expended an additional 28% of net trading losses as transaction costs. The article also points out that even those making net trading profits incurred between 15% to 50% of such profits as transaction costs, highlighting the significant impact of transaction costs on overall profitability. This detailed risk disclosure serves to educate investors about the potential downsides of trading in derivatives and the importance of careful consideration before engaging in such activities. Furthermore, it clearly specifies that top rated mutual funds do not constitute advice and that research data is powered by Morningstar, thereby placing full responsibility for investment decisions upon the individual investor. The disclaimer also clarifies that Upstox shall not accept any liability arising out of your investments. Further disclaimers are provided related to Exchange traded products, limiting investor recourse to Exchange investor redressal forums or Arbitration mechanisms.
The latter part of the article provides specific cautions and advisories to investors, in compliance with circulars issued by NSE, BSE, and MCX. These advisories caution investors against dealing in unauthorized collective investment schemes or portfolio management offerings that guarantee fixed returns or payments. It explicitly advises investors to avoid sharing trading credentials, login IDs, and passwords, including OTPs, as well as trading strategies and position details, to prevent unauthorized access to their accounts. The article also warns against trading in leveraged products or derivatives like Options without proper understanding, which could lead to substantial losses. Investors are further cautioned against writing or selling options or trading in option strategies based on tips without basic knowledge and understanding of the product and its risks. Perhaps most critically, the article strongly discourages investors from dealing in unsolicited tips received through platforms like WhatsApp, Telegram, Instagram, YouTube, Facebook, SMS, and calls. Similarly, investors are warned against trading in Options based on recommendations from unauthorized or unregistered investment advisors and influencers. These guidelines are designed to protect investors from fraudulent schemes and to encourage responsible investment practices. The document concludes by urging investors to read the Advisory Guidelines For Investors as prescribed by the Exchange regarding investor awareness and safeguarding client’s assets, as well as the advisory regarding the updation of mandatory KYC fields. The comprehensive nature of these disclaimers and advisories underscores Upstox's commitment to transparency and investor protection, while simultaneously emphasizing the importance of investor education and responsible decision-making in the securities market.