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Annexure 5
Process of client risk profiling and proposed KYC Procedure
Clients will be classified as Conservative, moderate and Aggressive based on the score
obtained by answering the following questionnaire. Once, the score is obtained client will be
offered services/products which suits his/her risk appetite. The classification of the services is
also mentioned below.
Questionnaire for risk profiling of the client
Client’s Name :-_______________________________________________
Would you invest where a small return is earned associated with
small risk instead of a high return associated with high risk?
Direct Questions to ascertain
risk appetite

Strongly prefer
0

Prefer
10

Indifferent
20

Do not prefer
30

Strongly do not prefer
40
When market is not performing well would you like to invest in more
risky investment instead of less risky investment to earn high return?
Direct Questions to ascertain
risk appetite

Strongly prefer
40

Prefer
30

Indifferent
20

Do not prefer
10

Strongly do not prefer
0
High risk is associated with high return, Medium risk Is associated
with medium returns and low risk is associated with low returns?
What risk can you bear (not prefer)?
Direct Questions to ascertain
risk appetite

40
High
 medium
20

0
Low
What is the duration of investment you are looking forward to keep invested?

Short term Positional ( from 1 month to 6 months)
10

Long term Positional (more than 1 year)
0

Intraday
20
In which of the following market segments have you traded
previously?
For Selection of product
Commodity
Stock
Derivatives Stocks
Forex
All
What is your experience with equity investments ?

Extensive experience

Moderate experience

Very less experience

No experience
What is your experience with Commodity investments ?

Extensive experience

Moderate experience

Very less experience

No experience
What is your experience with Forex investments ?

Extensive experience

Moderate experience

Very less experience

No experience
For selection of product
For selection of product
For selection of product
What is your Age Group ?
Weight Allotted

Under 35
40

Under 45
30

46-55
20

55-20
10
0
0

Capital Appreciation

Regular Income
40

Capital Appreciation and Regular Income
20
Proposed Investment Amount

<1 lacs
0

1-2 lacs
10

2-5 lacs
20

> 5 lacs
30
Gross Annual Income details:
Below 1 lac,
0


1-5 lac,
5-10 lac,
10

10-25 lac,
30

>25 lac
40
20
Sources of Income
A. Primary Source
Salary
Business
B. Secondary Source
Royalties
Rental
Dividend
Others Specify________
Market Value of portfolio held
<1 lacs
10
1-2 lacs
20
2-5 lacs
30
> 5 lacs
40
Investment Experience
< 3 years
0
3-5 years
10
>5 years
20
How many dependents do you financially support ?

None
20

Between 1-3
10

4+
0
What is the size of your emergency fund ?

do not have
0

< 1 month income
0

1-3 months income
10

3-6 months income
20

> 6 months income
30
What is your experience with investments in past ?

Very Good
40

Good
30

Moderate
20

Bad
10

Very Bad
0
What percentage of monthly income is allocated to pay off debt [all EMIs]?

None
40

Between 0% -20%
30

Between 20% - 35%
20

Between 35% - 50%
10

> 50%
0
Occupation (please select the appropriate)
Private sector service, Public sector,
Government sector,Business ,
Professional,Agriculturist,
Retired, Housewife, Student,
 Dealer,
Others
Are you any of the following, or are directly or indirectly related to any of the following
Civil Servant,
Politician,
Current or former head of state,
Bureaucrat (Tax authorities, Foreign Services, IAS etc),
Current or former MP/MLA/MLC,
Connected to Media,
Connected to any company/promoter group/ group of companies listed on any stock
exchange
The maximum total is 480, if client scores less than 50 he is a conservative client, if client
scores between 51-150, he is a moderate risk client and if scores above 150 he is aggressive
client.
Conservative clients will not be offered any services.
Risk Based Classification of the Services
Sr. No Product /Term
Classification
1 Intraday Cash
Medium
2 Future Basic
High
3 Futures Premium
High
4 Options Basic
High
5 MCX Basic
High
6 MCX HNI
High
7 Agri
High
8 MCX Premium
High
9 Future HNI
High
10 Options Premium
High
The above classification indicates that a client with moderate risk will be eligible for Medium risk
products and clients classified as aggressive will be eligible for High risk as well as medium risk
products. The above classification of products is done based on following.
Sr. No Segment
Risk
1
Cash
Medium
2
F&O
High
3
Commodity High