What is a contract note
In the world of stock investing, understanding the term 'contract note' and its importance, have high priority. Here is a simple bu detailed explanation on what contract note means.
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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Sherin: Do you have any future plans for writing your views and sharing your thoughts on Stocks!! More of a sensible investments (not trading).
Thanks,
Of course. I never add any article in this blog on trading as it is totally focused to value investments only. I will add more article time to time.
Thanks, Sherin
Thanks for the sharing. I learn a term today, "Contract Note" but thinking of is it a written note or online note?
A contract note can be both in printed form and digital form. If one select printed form, he will get a copy through post or courier. If select digital note, he can receive the same through email. some time broker itself provide access to the place where contract notes saved in the digital form, along with user name and password to open and read the same.
Thanks for your comment.
Thanks. I was not familiar with the term "contract note". Your blog is very professional, but it would be a good idea to explain basic terms for beginners as well.
Natalie, very happy to see your comment. I expect your return to my blog always and valuable comments like yours with any mutual trust.
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