View all categories

What is Risk Disclosure Document (RDD) & Equity & Commodity Annexure Documents?

The Risk Disclosure Document (RDD) contains important information concerning risks that all investors, whether individual, non-individual, retail or institutional, take while trading or investing in any capital market instrument in all situations.

The RDD is a SEBI-prescribed document that brokers must disclose to all onboarding clients. Investors should understand the risk involved and evaluate their risk tolerance before participating in equity-linked instruments, as equity-linked instruments carry varying risk elements.

The equity and commodity annexures are a set of documents of risks an investor undertakes while investing through a stock broker in the capital market. There are various risks, such as linkage failure of any intermediary in between the investor and the exchange, due to technical breakage, unforeseen events or any other reason for an erroneous order to have passed through.

When an account is opened, a copy of the RDD is sent to the registered email address. To receive a hard copy, create a ticket or download the file (ZIP).

The Equity Annexure Document (PDF) includes:

  • Annexure A - Rights and Obligations of Stock Brokers, sub-brokers and clients.
  • Annexure B - Risk Disclosure Document.
  • Annexure C - Guidance Note.
  • Annexure D - Policies and Procedures.

Commodity Annexure Document (PDF) includes:

  • Annexure P - Additional rights & obligations.
  • Annexure 2 - Guidance Note.
  • Annexure 3 - Risk Disclosure Document.
  • Annexure 4 - Rights and Obligations of members, authorised persons and clients.