ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -After the trade has been executed, within 24 hours the broker issues a Contract Note. This note contains details of the number of shares bought or sold, the price, the date and time of deal, and the brokerage charges.

Detailed explanation-2: -Contract note Ø Trading Member has to ensure that contract notes are issued in the prescribed format within 24 hours of execution of trades on the Exchange.

Detailed explanation-3: -Q. 7 Name the document prepared in the process of online trading of securities that is legally enforceable and helps to settle disputes/claims between the investor and the broker. Once the trade is conducted, the broker issues a contract note.

Detailed explanation-4: -A good contract note should have the following details in a standardized format. Trade information, such as order number, transaction size, transaction price, trade time, traded amount, brokerage paid, settlement reference number, and other service charges’ information.

Detailed explanation-5: -Issue of Contract Note A contract note consists of the details of the number of shares bought or sold, the date, time of the deal, price of securities, and brokerage charges. A contract note is an essential legal document. It helps in settling disputes claims between the investors and the brokers.