What is a contract note? Details to check in a contract note

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A contract note is a very important document for investors when they trade through brokers in the stock market. It is a legal document containing the details of trades that happen on the exchange platform. Investors must ensure the inclusion and correctness of the following elements in a contract note:

  • Identity of the investor (client) – name, PAN, address and the unique client code.
  • Identity of the trading member (broker), his SEBI registration number and trading member code.
  • Unique order number, trade number along with the timestamp for each trade.
  • Name of the company, ISIN, number of shares, buy or sell, price of the trade, total transaction value, applicable brokerage and other statutory levies.
  • It should contain a settlement number and the settlement date.
  • Net amount payable or receivable by you.
  • Signature of the member, or if the contract note is issued electronically, it must be password protected and be digitally signed.

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