Risk Disclosure

Last Updated: March 22, 2026

This Risk Disclosure Statement outlines the key risks associated with investing in Non-Convertible Debentures (NCDs) and other investment opportunities offered through the EqualPartners platform. This document is designed to help you make an informed investment decision.

1. General Investment Risk

1.1 Understanding NCDs

Non-Convertible Debentures (NCDs) are fixed-income debt instruments issued by companies to raise capital. Key characteristics include:

• Fixed Tenure: NCDs have a specified maturity period
• Interest Payments: Returns are typically paid as periodic interest (coupon payments)
• Issuer Dependent: The performance and safety of NCDs depend entirely on the financial health and creditworthiness of the issuing company
• Non-Convertible: Unlike convertible debentures, NCDs cannot be converted into equity shares

1.2 Types of Risks

• Market Risk: Value of NCDs may fluctuate due to changes in market conditions, interest rates, and economic factors
• Credit Risk: Risk that the issuer may fail to meet interest or principal repayment obligations
• Liquidity Risk: Difficulty in selling or exiting the investment before maturity
• Interest Rate Risk: Changes in interest rates can affect the market value of fixed-income securities
• Reinvestment Risk: Risk that periodic interest payments may be reinvested at lower rates

2. No Guarantee of Returns

2.1 Factors Affecting Returns

Actual returns depend on various factors including:

• Successful completion of underlying real estate projects
• Sales velocity and absorption rates of developed units
• Market demand and pricing conditions
• Economic and regulatory environment
• Developer's financial stability and execution capability
• Availability and cost of financing
• Force majeure events (natural disasters, pandemics, etc.)

3. Credit Risk & Default Risk

3.1 Issuer Default Risk

If the issuing company or developer fails to meet its financial obligations, investors may face:

• Delayed Payments: Interest or principal payments may be delayed beyond scheduled dates
• Partial Recovery: You may recover only a portion of your invested capital
• Complete Loss: In severe cases of issuer bankruptcy, you may lose your entire investment
• Legal Proceedings: Recovery may require lengthy and costly legal action

3.2 Secured vs. Unsecured NCDs

3.3 Credit Rating Considerations

• Investment opportunities may or may not be rated by credit rating agencies
• Credit ratings (if available) are opinions and not guarantees of creditworthiness
• Ratings can be downgraded based on issuer's deteriorating financial condition
• Unrated securities carry higher uncertainty regarding credit quality

4. Regulatory Disclaimer

4.1 Regulatory Framework

While EqualPartners operates within the applicable regulatory framework, investors should understand that:

• Regulations may change and affect your investment
• Compliance with regulations does not eliminate investment risk
• You are responsible for ensuring your eligibility to invest
• You should independently verify all information and claims

5. Liquidity Risk

5.1 Limited Liquidity

Investments in NCDs and structured debt products typically have limited or no liquidity:

• Lock-in Period: Your capital will be locked for the investment tenure (typically 12 months or more)
• No Secondary Market: There may be no active secondary market to sell your investment before maturity
• Premature Exit Restrictions: Early exit may not be permitted or may involve significant penalties
• Emergency Liquidity: You may not be able to access funds in case of personal emergencies

5.2 Implications of Illiquidity

6. Project-Specific Risks

6.1 Real Estate Development Risks

For investments backed by real estate projects, returns and repayment depend on:

• Project Completion Timelines: Construction delays due to regulatory approvals, labor issues, material shortages, or other factors
• Sales Performance: Ability to sell developed units at projected prices and within expected timelines
• Market Demand: Changes in real estate market conditions, buyer demand, and pricing dynamics
• Developer Capability: Financial strength, execution track record, and management capability of the developer
• Regulatory Approvals: Delays or denials of necessary permits, clearances, and approvals
• Cost Overruns: Increase in construction costs affecting project profitability

6.2 External Factors

• Economic Conditions: Recession, inflation, unemployment affecting real estate demand
• Interest Rates: Changes in home loan rates affecting buyer affordability
• Government Policies: Changes in tax laws, real estate regulations, or urban planning policies
• Infrastructure Development: Delays in promised infrastructure projects affecting location value
• Environmental Factors: Natural disasters, climate events, or environmental restrictions

7. Investor Responsibility

7.1 Required Actions

Before investing, you MUST:

• Conduct Independent Due Diligence:
  • Research the issuing company, its financial health, and management team
  • Analyze the underlying real estate project and its viability
  • Verify all claims, projections, and representations independently
  • Assess market conditions and competitive landscape
• Review All Documents Carefully:
  • Read the offer document, term sheet, and debenture trust deed thoroughly
  • Understand all terms, conditions, covenants, and restrictions
  • Review financial statements and project reports
  • Understand the security structure and repayment mechanism
• Consult Professional Advisors:
  • Seek advice from qualified financial advisors regarding investment suitability
  • Consult tax advisors on tax implications of the investment
  • Engage legal counsel to review investment documentation if needed
  • Discuss with your family and financial dependents

7.2 Self-Assessment

Evaluate your own situation honestly:

• Can you afford to lose the entire investment amount?
• Do you have adequate emergency funds set aside separately?
• Can you lock away this capital for the full investment tenure?
• Do you understand all the risks involved?
• Is this investment aligned with your financial goals and risk tolerance?

8. Investment Suitability

8.1 Suitable Investor Profile

Investment opportunities on the EqualPartners platform are suitable ONLY for:

• High Net Worth Individuals (HNIs): Investors with substantial financial resources and investment experience
• Risk-Capable Investors: Those who can bear the risk of losing their entire investment without affecting their financial stability
• Sophisticated Investors: Those who understand complex financial products and can evaluate risks independently
• Long-Term Investors: Those who can commit capital for the full investment tenure without liquidity needs
• Diversified Portfolios: Investors who maintain a well-diversified portfolio and are not over-concentrated in any single asset class

8.2 Unsuitable Investor Profile

9. Additional Risk Factors

9.1 Concentration Risk

Investing a large portion of your portfolio in a single investment or asset class increases risk. Maintain adequate diversification.

9.2 Taxation Risk

Tax laws may change, affecting the post-tax returns on your investment. Consult a tax advisor to understand current and potential tax implications.

9.3 Inflation Risk

Inflation may erode the real value of fixed returns over time. Consider whether the projected returns adequately compensate for inflation.

9.4 Currency Risk (for NRI Investors)

Non-Resident Indian (NRI) investors face currency exchange rate risk, which can affect returns when converted to foreign currency.

9.5 Legal and Documentation Risk

Inadequate or defective documentation, unclear security structures, or legal disputes may affect recovery of investments.

9.6 Platform Risk

While EqualPartners strives to conduct due diligence on investment opportunities, we do not guarantee the accuracy of information or the performance of investments.

10. Risk Mitigation Measures

While risks cannot be eliminated, consider the following to manage them:

• Diversification: Don't put all your capital in one investment
• Asset Allocation: Maintain a balanced portfolio across different asset classes
• Investment Limits: Invest only a small percentage of your net worth in high-risk products
• Regular Monitoring: Track the progress of your investments and issuer performance
• Professional Advice: Consult financial advisors regularly
• Stay Informed: Keep updated on market conditions and regulatory changes

11. Investor Support and Grievances

For questions, concerns, or grievances related to your investments:

• Contact EqualPartners support team for platform-related queries
• Reach out to the issuing company for investment-specific matters
• You may escalate unresolved grievances to relevant regulatory authorities
• Maintain copies of all investment documentation for your records

12. Acknowledgment and Acceptance