NISM Certifications · NISM-Series-VII: Securities Operations and Risk Management · Introduction to Securities Broking Operations
A broker executes a client's purchase of shares on 10 March. By when must the broker ordinarily issue the contract note to the client as per exchange norms?
A broker must issue the contract note to the client within 24 hours of executing the trade. It is not delayed until payout, a week later, or month-end, because the contract note is the legal confirmation of the transaction.
- AWithin 24 hours of execution of the tradeCorrect
- BWithin 7 days of the trade
- COn the settlement day after payout
- DAt the end of the month along with the ledger
Explanation
Exchange and SEBI norms require contract notes to be issued to clients within 24 hours of the execution of trades. Waiting for payout, a week or month-end is not permitted.
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