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.

 

 

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