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The article is primarily a disclosure and advisory notice from Upstox Securities Pvt. Ltd., providing essential regulatory information, risk disclosures, and cautionary advice to investors. It begins by listing the SEBI registration numbers, NSE and BSE TM codes, CDSL registration number, CIN, and contact details of the compliance officer for both Upstox Securities and RKSV Commodities India Pvt. Ltd. This information is crucial for investors to verify the legitimacy and regulatory compliance of the brokerage firm. The inclusion of registered and correspondence addresses, along with email addresses for complaints, ensures transparency and provides investors with avenues for redressal of grievances. The notice also directs investors to the SEBI SCORES portal for filing complaints, emphasizing the importance of registering on the platform and providing mandatory details such as Name, PAN, Address, Mobile Number, and E-mail ID. The benefits of using SCORES, including effective communication and speedy redressal, are highlighted to encourage investors to utilize the platform for resolving disputes. Furthermore, the article stresses the importance of carefully reading the Risk Disclosure Document as prescribed by SEBI, along with the Terms of Use and Privacy Policy. This emphasizes the investor's responsibility to understand the risks associated with investing in the securities market. The relationship between Upstox Securities, RKSV Securities India Private Limited, and RKSV Commodities India Private Limited is also clarified, stating that Upstox Securities 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. This disclosure provides investors with a clear understanding of the corporate structure and affiliations of the brokerage firm.
The disclaimer regarding investment in securities markets being subject to market risks is prominently displayed, reinforcing the need for investors to exercise caution and carefully review all related documents before investing. The statement that brokerage will not exceed the SEBI prescribed limit ensures investors that they will not be charged excessive fees. The risk disclosures on derivatives highlight the high percentage of individual traders in equity Futures and Options Segment who incur net losses, emphasizing the speculative nature of these instruments. The notice provides specific statistics, such as the average net trading loss for loss makers being close to ₹ 50,000 and the additional transaction costs incurred as a percentage of net trading losses. These statistics are intended to deter inexperienced investors from engaging in derivative trading without a thorough understanding of the risks involved. The disclosure also mentions the transaction costs incurred by those making net trading profits, ranging from 15% to 50% of such profits. This highlights the impact of transaction costs on overall profitability and encourages investors to factor these costs into their trading decisions. The article further cautions investors that top-rated mutual funds do not constitute advice and advises reading offer documents carefully before investing. It clarifies that Upstox shall not accept any liability arising out of investments and that the mentioned products are not exchange-traded, limiting access to Exchange investor redressal forums or Arbitration mechanisms for disputes related to distribution activity.
The advisory for investors, referencing NSE, BSE, and MCX circulars, cautions them to abstain from dealing in unauthorized collective investments, portfolio management schemes, and schemes offering indicative, guaranteed, or fixed returns. It warns against sharing trading credentials, including login IDs, passwords, and OTPs, as well as trading strategies and position details. The advisory specifically discourages trading in leveraged products or derivatives like Options without proper understanding, highlighting the potential for significant losses. It advises against writing or selling options or trading in option strategies based on tips without basic knowledge of the product and its risks. Investors are cautioned against dealing in unsolicited tips received through platforms like WhatsApp, Telegram, Instagram, YouTube, Facebook, SMS, and calls. The advisory emphasizes the dangers of trading or trading in Options based on recommendations from unauthorized or unregistered investment advisors and influencers. Furthermore, the article refers to the Advisory Guidelines For Investors as prescribed by the Exchange regarding investor awareness and safeguarding client’s assets, as well as the advisory regarding Updation of mandatory KYC fields. This comprehensive set of disclosures and advisories aims to protect investors by providing them with the necessary information and warnings to make informed investment decisions and avoid potential pitfalls in the securities market. The article serves as a crucial resource for investors seeking to understand the risks associated with trading and investing through Upstox.
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