Following documents are mandatory for any kind of trade that has to be executed on the Exchange:
- Contract note in Form A
b. In the case of electronic contract notes issued by the brokers, the clients have to make sure the same contract is digitally signed. If the client is unable to view the e- contract, then he can contact the broker regarding same. At this point, the broker’s job is to send a physical copy of the contract note to the client within the given time.
Contract note forms a very vital legal document. It gives rise to contractual obligations and rights.
The contract note should have the following:
- Name, address and SEBI Registration number of the broker.
- Name of the partner or the proprietor or the sanctioned signatory.
- Dealing Office Address/Tel Number/Fax Number, Code number of the member given by the telephone exchange.
- Unique Identification Number Name of partner
- Contract number, date of issue of contract note, time duration for settlement and settlement number
- Constituent (Client) name or Code Number.
- Order number and order time with respect to the trades.
- Trade number and Trade time.
- Quantity and kind of security purchased or traded by the client.
- Brokerage and purchase or sale rate are given separately.
- Service tax rates and any other charges collected by the broker.
- Securities Transaction Tax (STT) as applicable.
- Appropriate stamps have to be affixed on the authentic contract note or mention that the consolidated stamp duty is paid.
- Signature of the Stock- broker/Authorized Signatory.
Contract note provides for the recourse to the system of arbitrators for settlement of disputes arising out of transactions.