Why do I see warning messages when trading stocks on FYERS?
When placing an order on FYERS, you might occasionally see a warning message such as “Regulatory Caution.” These alerts are shown for stocks that fall under one or more regulatory, risk, or trading restrictions. They’re meant to inform and protect you before you proceed with a potentially risky or restricted trade.
Let’s break down what these warnings mean and why they appear.
What triggers a warning message?
FYERS displays caution messages if a stock shows any of the following flags:
1. Financial Health Risks
- Loss-making for the last 8 quarters
- EPS (Earnings Per Share) is zero or negative for the last 4 quarters
- P/E (Price to Earnings) ratio above 50 for the last 4 quarters
2. Compliance or Regulatory Issues
- Listed under SEBI’s Z, BZ, or SZ series due to non-compliance
- Company has disclosed a default
- Trading banned — 95% of MWPL breached
3. Surveillance & Monitoring by Exchanges
- Over 50% of promoter holding is pledged
- High pledging by promoters and public shareholders
5. Liquidity Concerns
- Fewer than 100 unique traders in the last 30 days
- Market-making has ended; exit may be difficult
- Low trading activity may delay order execution
6. Price Volatility or Abnormal Movement
Price increased over:
- 25% in 5 trading days
- 90% in 3 months
- 200% in 1 year
Price fluctuated over:
- 75% in 1 month
- 150% in 3 months
- 300% in 1 year
7. Trading Restrictions
- Trade-to-Trade settlement: intraday not allowed
- Scheduled to exit derivatives segment
What If?
| Scenario | What it means |
|---|
| You try to place an intraday trade | Not allowed if the stock is in Trade-to-Trade settlement. Only delivery orders are permitted. |
| You see a “Regulatory Caution” but proceed | Your order will go through, but you're trading a flagged stock. Proceed with care. |
| You plan to exit quickly | Might be hard for low-volume or delisted derivative stocks. Orders may take longer to fill. |
| The warning mentions MWPL | The stock has breached 95% of the open interest limit. Trading in derivatives may be restricted. |
You can always click on 'Learn more' in the warning banner to land on this article.
Last updated: 24 Jun 2025
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