From 1 Jul 2026 a person who only teaches may not use market price data of the preceding thirty days to name a security in a way that points to its future price, or to advise or recommend on it. That is SEBI's circular of 8 May 2026. So every price on this school's pages is older than thirty days, this lesson's chain is from June 2026, and no page says where Nifty goes next. The rule is also the first test for any F&O page, post or group: does it show a live strike with a direction attached? If it does, it is doing something other than education, and SEBI treats that something as a registered activity. What follows is the short checklist I use on anything that promises money from F&O. It uses SEBI's own words wherever it can.

3By the end you can

  1. Run five questions on any F&O claim and say which SEBI rule each one rests on.
  2. Check whether a person is on SEBI's lists and whether a performance claim is allowed.
  3. Explain why a high accuracy can be built in by choosing a far strike, using a dated chain.
The RupeeCase terminal on sample data: Model cards on a portfolio: which figures are mine?
Watch in the terminal: which figures are mine? A short tutorial on sample data.

The idea, plainly

Think of a stranger selling a map. A fair map shows the roads as they were surveyed on a date. A red flag is a map that shows where the traffic will be tomorrow, and wants money for it. Five questions sort one from the other.

Five questions that sort education from a sales pitch

A five question checklist for any F&O claim: who is speaking, what is promised, whether a live strike or level is attached, who is being paid and whether it can be checkedDiagram with 5 boxes. 1. Who is speaking? to 2. What is promised?; 2. What is promised? to 3. Is a live strike or level attached?; 3. Is a live strike or level attached? to 4. Who is being paid?; 4. Who is being paid? to 5. Can it be checked?.1. Who is speaking?Look the name up on SEBI'slists of advisers and researchanalysts2. What is promised?Accuracy, fixed pay, no loss:stop here3. Is a live strike or levelattached?Recent price plus a directionis not education4. Who is being paid?Referrals, courses and brokerlinks count5. Can it be checked?A verified record, not ascreenshot
The order matters: a failure at the first two needs no further work. Each question is tied to a SEBI rule below. Source: SEBI Research Analysts Regulations 2014; SEBI Intermediaries Regulations 2008; SEBI circular of 8 May 2026. As of 16 Oct 2026.

1. Who is speaking?

A strike to trade, a level to buy or exit at, or a call to trade is research work, and it needs SEBI registration as a research analyst or an investment adviser. SEBI's lists show the registration number and its status. A name that is not on them, or that differs from one by a letter, fails the first test.

2. What is promised?

SEBI allows a claim of returns or performance only from registered advisers, research analysts and exchange empanelled algo providers, and only as risk and return metrics checked by an agency SEBI has recognised (Intermediaries Regulations, regulation 16E). Those agencies have been at work since 4 May 2026. A screenshot is not a verified record.

3. Is a live strike or level attached?

Recent price data beside a named contract and a direction is not education. SEBI's interim order of 4 Dec 2025 held, prima facie, that live trade advice had been given as chart study, with levels and exits during market hours. It was an interim order, not a final finding. The test for any lesson, this one included: would the idea survive if the date on every price were a month older?

The term this section turns on: Prima facie

The term this section turns on: Prima facieThe term this section turns on: Prima facie. Prima facie: On first look at the evidence. An interim SEBI order states prima facie findings, which a final order may confirm or change.Prima facieOn first look at the evidence. An interim SEBIorder states prima facie findings, which afinal order may confirm or change.
From the module glossary; every term is in the Learn glossary too. Source: Module 12.8, Red flags in F&O: tip groups, too good claims and registration checks.

4. Who is being paid?

Free is not free if it earns a referral. Since 29 Aug 2024 a SEBI regulated broker or fund may not be associated with anyone who gives advice without registration or claims returns without permission, and association covers money, referrals and links between systems. A broker's name beside a tip service is a flag, not a comfort.

5. Can it be checked?

A record counts only when someone outside has verified it, as in question 2. Algo claims get the same test. Algo providers do not register with SEBI as algo providers. They are empanelled with the exchanges, and a provider that sells a black box algo must also be a registered research analyst. Neither is a profit claim. SEBI's Aug 2026 profitability study found that in FY26, 99% of the gross profit of foreign portfolio investors and proprietary firms came from entities that placed at least one algo order. Those are firms with research teams, capital and speed. Algo describes how an order is sent, not whether the idea behind it earns. Learn module 10.3 has the retail algo rules in full.

Worked example: a claim against the 10 Jun 2026 chain

Here is a composite claim, written for this lesson and not taken from any post:

Model, not market data

A far strike wins most weeks, and the few losses give back every win

Model, not market data. Modelled weeks for the seller of one far Nifty put: a green bar of many small wins and a red bar of a few large losses, the same lengthProfit: 94 weeks in 100 77,177; Loss, all 6 weeks in 100 −77,246; of which up to 3x premium −1,096; of which 3 to 10x premium −8,814; of which over 10x premium −67,336.Per 100 weeks, one lot, before costs; L is lakhProfit: 94 weeksin 100+0.77LLoss, all 6 weeksin 100−0.77Lof which up to 3xpremium−0.01Lof which 3 to 10xpremium−0.09Lof which over 10xpremium−0.67L
Each bar is the total in rupees per hundred weeks for one lot. Prices are fair, so nobody starts with an edge. Module F13 shows the same arithmetic on a call. Inputs: one lot of 65 units of the Nifty 22,500 put sold at its settlement premium of Rs 12.65 a unit on 10 Jun 2026, expiry 16 Jun 2026; the forward 23,229.26 and the option's own implied volatility 16.16% over 6 calendar days; the index at expiry follows a lognormal curve around the forward; 100 weeks; before costs and interest. Source: RupeeCase model, inputs from NSE end of day data. As of 10 Jun 2026.

Sellers lost money least often, and lost the most per trader

SEBI sample for FY26: traders who mostly sold options had the smallest share of losers, 44 percent, and the largest average loss per trader, 51.7 lakh rupees, against 1.28 lakh for those who only bought optionsOnly buyers, 90% lost −1; Mostly buyers, 75% lost −5; Mostly futures, 61% lost −2; Mostly sellers, 44% lost −52.Average result per trader, FY26, Rs lakhOnly buyers, 90%lost−1.28LMostly buyers,75% lost−4.63LMostly futures,61% lost−1.67LMostly sellers,44% lost−51.7L
Groups are named by SEBI from each trader's first legs. The sellers are a very small group, about two percent of the sample, so SEBI calls the figures indicative. The share of losers is shown in each label. Source: SEBI, Trading Behaviour of Individual Traders in the Equity Derivatives Segment (FY25 to FY26), Aug 2026, Table 5. As of 20 Aug 2026.

Five SEBI steps since Aug 2024 narrowed what anyone may claim or teach

  1. The association rule

    A SEBI regulated broker or fund may not be associated with anyone who gives advice without registration or claims returns without permission.

  2. Verified metrics only

    Registered advisers, research analysts and empanelled algo providers may claim returns only as metrics verified by a recognised agency.

  3. An interim order on advice given as education

    SEBI held, prima facie, that live trade advice was disguised as chart study. An interim order, not a final finding.

  4. Verification agencies at work

    Past risk and return verification is operating.

  5. The thirty day rule applies to educators

    No use of the preceding thirty days of price data to name a security in a way that points to its future price.

Dates are the days each step took effect or was issued. The school follows the strictest of them. Source: SEBI Intermediaries Regulations 2008; SEBI circulars of 29 Jan 2025 and 8 May 2026; SEBI interim order of 4 Dec 2025. As of 16 Oct 2026.
Read 3 more paragraphs, 168 words

It names no registration number, so the first question fails. It promises accuracy, so the second fails. Now test the number itself. On the weekly chain of 10 Jun 2026 take the 22,500 put, which settled at 12.65 a unit, Rs 822 a lot. In the model below prices are fair and nobody has an edge, and this sale still wins 94 weeks in every hundred. The accuracy is real and it is by design: a far strike is rarely reached.

The red bar is as long as the green one. About 3 weeks in a hundred supply 87% of the losses. Accuracy tells you where the strike sits, not what the seller earns. Module F13 works the arithmetic in full.

SEBI's Aug 2026 behaviour study, on a random sample of individual traders, shows the same shape in real accounts. In FY26 the traders who mostly sold options had the smallest share of losers of any group, and by a wide margin the largest average loss per trader.

The common mistake

The belief: It is a SEBI registered platform, so it is safe and it makes money. Registration, or an exchange empanelment for an algo provider, says a firm has met conditions to operate. It is not a statement about returns, and the same regulations bar returns claims unless the metrics are verified. A registration number answers the first question and none of the other four. Look the number up, then ask for the verified record. If either is missing, the rest of the pitch does not matter.

The RupeeCase terminal on sample data: The Compare card: return or growth per year?
Watch in the terminal: return or growth per year? A short tutorial on sample data.

Key takeaways

  • A level or strike to trade is research work and needs SEBI registration.
  • Return claims need verified metrics. A screenshot is not a verified record.
  • Recent prices beside a named contract and a direction are not education.
  • Referrals, courses and broker links are payments, so free is not free.
  • Registration and empanelment are about conduct, not about profit.
  • A far strike wins often by design. Ask about the size of the loss.

Two terms to hold on to from 12.8

Two terms to hold on to from 12.8Two terms to hold on to from 12.8. Research analyst: A person registered with SEBI to give research services, which include a level to trade at, a recommendation to buy, sell or hold, and calls to trade. Investment adviser: A person registered with SEBI to give personal advice on securities for a fee.Research analystA person registered with SEBI to give researchservices, which include a level to trade at, arecommendation to buy, sell or hold, and...Investment adviserA person registered with SEBI to give personaladvice on securities for a fee.
From the module glossary. Source: Module 12.8, Red flags in F&O: tip groups, too good claims and registration checks.

Before you trade. Derivatives trading carries a high risk of loss. SEBI's study "Profitability of Individual Traders in the Equity Derivatives Segment (FY25 to FY26)" (August 2026) found that 87.7% of individual traders in equity F&O made net losses in FY26, with aggregate net losses of Rs 91,685 crore. Read the SEBI study