Procedure for Suitability Assessment for client. Pursuant to the obligations placed on an investment advisor by SEBI under SEBI (Investment Advisor) Regulations 2013, we have decided to formulate policies for risk profiling and suitability assessment as required under regulation 16 and 17 of the said act. The classification should be done in a manner that
To ensure that the advice given to the client is suitable for the client we shall ensure that all investments on which investment advice is provided is appropriate to the risk profile of the client by categorizing client as low risk appetite, medium risk appetite and high risk appetite. A similar classification will be done for products after considering the risk and reward of the services offered and various sebi guidelines in this regards. Client with Medium risk appetite is recommended to subscribe medium risk services only and client with high risk appetite is recommended to subscribe either medium or high risk services. We do not offer low risk services. We are not offering any complex financial products.
|Sr. No.||SCORE||TYPE OF INVESTOR||LEVEL OF RISK TOLERANCE||SUITABLE SERVICES||CHARACTERISTICS OF SERVICES|
|2||150-350||Moderate||Medium||Group A||Offers Medium risk and reward, Generally principal is exposed to risk but not 100% exposed to risk Approximately 4-5 tips per service and mostly intraday|
|3||350 and above||Aggressive||High||Group B||Offers High risk and high return, Principal may be at 100% risk, suitable only for experienced investors/ willing to take risk in markets for high returns. Approximately 4-5 tips per service and sometimes required to hold the position.|
"LOW" RISK INVESTOR -An investor who has low ability to accept risk. To achieve better returns, not willing/ able to invest a portion in equity funds or stocks for capital gains. "moderate" risk investor An investor who understand risk in investment and accept short to long term fluctuation to achieve a high return and capital gain. Capital values can fluctuate and may fall under original investment capital, during economy downturn. Such Investor should be offered services classified under Group A. "high" risk investor An investor who seek for “high risk high return” investment, able to accept short to long term fluctuation to earn very high returns. Services under Group B are recommended however client may also opt for services under Group A. Classification of Services:
|Sr. No.||GROUP A||GROUP B|
|1||Stock Cash||Futures and Options|