You receive the Risk Disclosure Document (RDD) when you open your Zerodha account. This document explains the important risks you face when trading or investing in any capital market instrument.
SEBI requires all brokers to provide the RDD to clients during account opening. You should understand these risks and evaluate your risk tolerance before participating in equity-linked instruments, as these instruments carry varying risk elements.
What risks does the RDD cover?
The equity and commodity annexures detail the risks you undertake when investing through a stock broker in the capital market. These risks include:
- Linkage failure of intermediaries between you and the exchange
- Technical breakdowns that may cause erroneous orders
- Unforeseen events affecting your trading activities
- Other factors that could impact your investments
When you open your account, you receive a copy of the RDD at your registered email address. If you need a hard copy, you can create a create a ticket or download the file (ZIP).
What documents are included in the RDD?
The annexure document 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.
- 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.