What is a Contract Note?

What is a Contract Note?

A Contract Note is an official, legal record of all the trades executed on your behalf by a SEBI-registered stockbroker.

It is one of the most important post-trade documents in the Indian stock market and is issued electronically or physically after every trading day on which you’ve placed a trade.


According to SEBI guidelines, the contract note must be sent to you within 24 hours of trade execution.

Why is a Contract Note Important?

  1. It acts as proof of trade between you and your broker.
  2. It helps you verify whether your trades were executed correctly.
  3. It provides a clear breakdown of charges, including brokerage, exchange fees, and taxes.
  4. It is essential for tax filing and auditing purposes.
  5. It helps in resolving any trade-related disputes with the broker or exchanges.

How to Receive a Contract Note?

You'll usually receive your contract note via email, sent by your broker through a SEBI-registered email ID. While physical copies are available on request, they're not typically sent unless specifically asked for.

As per regulations, the contract note must be issued within 24 hours of the trading day.

Pro tip: Always double-check the sender's email address and verify the digital signature to confirm the note's authenticity.

Things to Check in a Contract Note

1. Make sure the trades listed match what you actually placed
2. Verify prices and charges. Everything should line up correctly.
3. Check that the brokerage fees are within SEBI's limits:
  1. ₹20 per executed order for intraday and F&O
  2. 2.5% of the trade value for delivery trades
4. Ensure you received the contract note within 24 hours of the trade.
5. It's always good practice to review these details to avoid any discrepancies.

What if You Don't Receive a Contract Note or Spot Errors?

  1. Raise the issue with your broker’s compliance officer immediately.
  2. If unresolved, file a complaint with: SEBI SCORES portal (https://scores.sebi.gov.in/)
  3. Exchange grievance redressal platforms (NSE/BSE)

Final Thoughts

A Contract Note is not just a routine document; it’s your legal safeguard in trading. Always store them securely (especially for F&O or high-volume trades) and cross-check regularly.

Even if you use a mobile trading app, your Contract Note will reflect the official trade data sent to the exchange, making it your go-to document for verifying accuracy.

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