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NISM Certifications · NISM-Series-VII: Securities Operations and Risk Management · Introduction to Securities Broking Operations

A broker executes a client's order on the exchange on Monday. By when must the broker ordinarily issue the contract note to the client under exchange rules?

The broker must issue the contract note within 24 hours of executing the trade. It is a mandatory document evidencing the trade, not something dependent on a client request or on the completion of the settlement cycle.

  1. AWithin 24 hours of the execution of the tradeCorrect
  2. BWithin 7 days of execution
  3. CAt the end of the settlement cycle only
  4. DOnly if the client requests it in writing

Explanation

Brokers are required to issue contract notes to clients within 24 hours of the execution of the trades. Waiting for a week or the end of the settlement is not permitted, and issuance does not depend on a client request.

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