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?

  1. Email (most common): Sent by your broker from a SEBI-approved email ID.
  2. Physical Copy: Can be requested but not typically sent unless required.
  3. Must be issued within 24 hours of the trade day.
Tip: Always verify the sender’s email and check the digital signature to ensure authenticity.

Things to Check in a Contract Note

  1. Trades match what you actually placed.
  2. Prices and charges look correct.
  3. Broker hasn’t overcharged you on brokerage (check max brokerage cap as per SEBI norms: ₹20 per executed order for intraday/F&O and 2.5% for delivery trades).
  4. You received the note on time.

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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