Posted on 15th Oct 2016
by TopShareBrokers Team
Rated 4.5/5 based on 24 customer reviews
Contract Note is the legal record from your share broker to give you complete details of your transaction carried out on stock exchange. This document gives you confirmation of transaction done on particular day, on exchange, on behalf of you by your broker. It's broker's responsibility to produce this document by end of the day in case you have done any transaction/trading in stock market. Usually broker share this document digitally with clients using their registered email. Historical contract notes are also available in your back office.
Contract Note is daily trading information from your broker, that will give you a clear visibility on your transaction executed on exchange with a reference number, which can be used to cross-check the details with exchanges in case of any discrepancy. Thus Contract Note is bridging document between you and stock exchange.
Your Contract Note has broker Information which include SEBI registration No, Clearing No, Trading no, CMBP ID, Signature of Authorized Signatory or Digital Signature in Electronic format, bylaws and regulations pertaining to Arbitration, your PAN number and personal information. All these information should be review.
Next section is your trading details:
Most importantly, you can see how much brokerage and other service charges are applied on your transaction as it shows:
It is clearly displayed in your contract note how much brokerage you pay per transaction.However to let you know, as per SEBI guidelines, your broker can chargemax2.5% on the higher side and 0.01 Rs (1 Paisa) on the lower side. Now it's up to your broker how much brokerage he charges to you. Other than brokerage another factor which can vary is transaction charges. All other charges are standard and broker doesn't have any control over them.
Now to show how much you can save with Discount Broker like Prostocks as compared to full service broker like ICICI direct, we are here trying to compare the contract notes from both the broker.
ProStocks Contract Note
ICICIDirect Contract Note
You can expect contract note from your broker only when you have done some trade in market. Usually contract notes are generated after market closes.
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You should check the number of order your have given and how many of them are executed and on what price. This is your end of the day transaction snapshot so it will give you details on net amount receivable or payable information.
Contact note can act as cross reference in case of doubt with respect to any transactions as you can verify the genuineness of the same on the BSE/NSE website. This document is a prerequisite for filing a complaint or arbitration proceedings against your broker, you should always insist on timely delivery of contract notes from your broker. Contract note is your daily ledger, so one should have to keep track of it for year-end tax filling. It helps you in following ways:
Usually you get copy of your contract note in your register email and you can get historical contract note on brokers back office site. Broker need to provide historical contract notes on his website (back office) for min 1 year of period.
In case you have issue with your Contract note, please contact your broker to resolve the issue. In case broker is not responding, you can use invertor grievance with SEBI/NSE/BSE against broker with valid proof of disputes.