NISM Certifications · NISM-Series-VII: Securities Operations and Risk Management · Introduction to Securities Broking Operations
A broker is required to issue contract notes to clients for trades executed on the exchange. Within what time frame must the contract note ordinarily be issued to the client?
A contract note must be issued to the client within 24 hours of the execution of the trades. It is the legal confirmation of the transaction, so delayed or on-request issuance such as weekly or quarterly timing does not meet the regulatory requirement.
- AWithin 24 hours of the execution of the tradesCorrect
- BWithin 7 days of the trade
- CAt the end of the financial quarter
- DOnly on the client's request
Explanation
Under exchange and SEBI requirements, the contract note must be issued to the client within 24 hours of execution of trades. Quarterly or on-request issuance would defeat its purpose as proof of the transaction.
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