Question:
What details must be included in a contract note?
What details must be included in a contract note?
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Always verify the UCC (Unique Client Code) and Order/Trade Numbers on your contract note. These parameters verify that the trade was executed directly on the exchange's automated system rather than matched internally by the broker.
Updated On: Jun 22, 2026
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Solution and Explanation
Step 1: Definition of a Contract Note:
A contract note is a legally binding document issued by a registered stockbroker (trading member) to their client at the end of each trading day, confirming the execution of securities transactions. It establishes an enforceable contract between the broker and the investor and serves as primary evidence in the event of dispute.
Step 2: Mandated Disclosures under SEBI Regulations:
To ensure transparency, prevent unauthorized trades, and simplify auditing, SEBI requires that every contract note must include the following details:
• Administrative & Regulatory Identifiers:
• Name, address, and registration number of the Stockbroker (Trading Member).
• SEBI registration number of the stockbroker.
• Name, address, and Unique Client Code (UCC) of the investor.
• Permanent Account Number (PAN) of both the broker and the client.
• Transaction Execution Parameters:
• Distinct Trade Date and execution Time for each transaction.
• Order Number and corresponding Trade Number generated by the exchange's trading engine.
• Security description, including its symbol, ISIN, and the stock exchange where it was executed.
• Direction of transaction: Buy (B) or Sell (S).
• Financial & Cost Breakdown:
• Trade Quantity (number of shares/units traded).
• Gross execution Price per share/unit.
• Brokerage commission charged by the broker (separately itemized).
• Statutory Taxes and Charges: Securities Transaction Tax (STT), Goods and Services Tax (GST), SEBI Turnover Fees, Exchange Transaction Charges, and Stamp Duty.
• Net Rate per share/unit (calculated as: $\text{Gross Price} \pm \text{Brokerage} \pm \text{Statutory Levies}$ depending on buy/sell action) and the total net payable/receivable amount.
A contract note is a legally binding document issued by a registered stockbroker (trading member) to their client at the end of each trading day, confirming the execution of securities transactions. It establishes an enforceable contract between the broker and the investor and serves as primary evidence in the event of dispute.
Step 2: Mandated Disclosures under SEBI Regulations:
To ensure transparency, prevent unauthorized trades, and simplify auditing, SEBI requires that every contract note must include the following details:
• Administrative & Regulatory Identifiers:
• Name, address, and registration number of the Stockbroker (Trading Member).
• SEBI registration number of the stockbroker.
• Name, address, and Unique Client Code (UCC) of the investor.
• Permanent Account Number (PAN) of both the broker and the client.
• Transaction Execution Parameters:
• Distinct Trade Date and execution Time for each transaction.
• Order Number and corresponding Trade Number generated by the exchange's trading engine.
• Security description, including its symbol, ISIN, and the stock exchange where it was executed.
• Direction of transaction: Buy (B) or Sell (S).
• Financial & Cost Breakdown:
• Trade Quantity (number of shares/units traded).
• Gross execution Price per share/unit.
• Brokerage commission charged by the broker (separately itemized).
• Statutory Taxes and Charges: Securities Transaction Tax (STT), Goods and Services Tax (GST), SEBI Turnover Fees, Exchange Transaction Charges, and Stamp Duty.
• Net Rate per share/unit (calculated as: $\text{Gross Price} \pm \text{Brokerage} \pm \text{Statutory Levies}$ depending on buy/sell action) and the total net payable/receivable amount.
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