Risk Disclosure Document (RDD)

Fri, 19 Jun 2026 00:00:00 +0000

The Risk Disclosure Document (RDD) is a SEBI and exchange mandated disclosure that a stockbroker must give every client at account opening, setting out in plain terms the risks of trading and investing in securities and derivatives. It forms one annexure of the standardised account opening kit that every broker, including Zerodha , is required to deliver before a trading account can be activated.

The RDD is one of the oldest investor-protection instruments in the Indian market. It is not a marketing document and not a disclaimer the broker drafts at will. Its scope, its position in the account opening kit, and the obligation to obtain the client’s acknowledgement all trace to the SEBI (Stock Brokers) Regulations, 1992 and to exchange circulars that prescribe the exact set of documents a client must receive. The document exists so that no client can later claim ignorance of the structural risks that trading carries, and so that the broker holds a timestamped record proving the disclosure was made.

F&O Risk Disclosure on WebNotes

Risk Disclosure Document (RDD)