Why is income proof required for F&O trading at FYERS?

Why Is Income Proof Required for F&O Trading at FYERS?

Futures & Options (F&O) trading involves leveraged positions and higher financial risk. We require clients to submit income proof before enabling F&O access, as mandated by SEBI and exchange regulations. This ensures that traders have the financial capacity to handle market volatility.

Income verification is mandatory for F&O access

F&O instruments are derivatives that allow margin-based trading, buying and selling contracts without fully owning the underlying assets. Due to the amplified risk, SEBI requires brokers to verify whether a client is financially capable of participating in these segments.

At FYERS, income proof must be submitted and approved before F&O is enabled on your account. This verification step protects traders from excessive exposure and maintains system-level compliance.

Accepted documents for income verification

You can submit any one of the following:

  • Income Tax Return (ITR)
    A copy of your most recent filed return
  • Demat holdings statement
    A current statement showing active holdings (FYERS or another broker)
  • 6-month bank account statement
    Must show income inflows or transaction activity under your name
Ensure your documents are clearly legible, display your full name, and reflect income or holdings. Password-protected PDFs should include the access code while uploading.

What if…

ScenarioSolution
You're a student or have no income documentsYou won’t be permitted to trade in F&O. Equity trading remains available.
Your income is below the exchange thresholdF&O access may be declined unless you show substantial holdings or alternative proof.
You submitted documents, but haven’t been enabled yetF&O activation typically takes 24 business hours. Contact us if delayed.

Last updated: 26 Dec 2025