Reading the contract note after each stock transaction, is a best practice and a must for an investor to identify and solve any possible errors from self or from broker side. Below is the of major points in a contract note where your attention required mostly.
A broker has to issue a contract note to clients for all transactions in the form specified by the stock exchange. The contract note inter-alia should have following:>> Name, address and Exchange Registration number of the Member broker.>> Name of partner/proprietor/Authorized 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 number and 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.