As it relates to "Contract Notes":
Quote:
What is a Contract Note?
Contract Note is a confirmation of trades done on a particular day on behalf of the client by a trading member. It imposes a legally enforceable relationship between the client and the trading member with respect to purchase/sale and settlement of trades. It also helps to settle disputes/claims between the investor and the trading member. It is a prerequisite for filing a complaint or arbitration proceeding against the trading member in case of a dispute. A valid contract note should be in the prescribed form, contain the details of trades, stamped with requisite value and duly signed by the authorized signatory. Contract notes are kept in duplicate, the trading member and the client should keep one copy each. After verifying the details contained therein, the client keeps one copy and returns the second copy to the trading member duly acknowledged by him.
What details are required to be mentioned on the contract note issued by the stock broker?
A broker has to issue a contract note to clients for all transactions in theform specified by the stock exchange. The contract note inter-alia should have following:
Name, address and SEBI Registration number of the Member broker.
Name of partner/proprietor/Authorised Signatory.
Dealing Office Address/Tel. No./Fax no., Code number of the member given by the Exchange.
Contract number, date of issue of contract note, settlement numberand time period for settlement.
Constituent (Client) name/Code Number.
Order number and order time corresponding to the trades.
Trade number and Trade time.
Quantity and kind of Security bought/sold by the client.
Brokerage and Purchase/Sale rate.
Service tax rates, Securities Transaction Tax and any other charges levied by the broker.
Appropriate stamps have to be affixed on the contract note or it is mentioned that the consolidated stamp duty is paid.
Signature of the Stock broker/Authorized Signatory
Posted 04/24/2011 7:33 pm
