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

A broker's client, Ms. Meera Iyer, wants to know when she will receive her contract note after a trade executed today. Under the rules, a broker must issue the contract note to the client within what time?

A broker must issue the contract note within 24 hours of executing the trade. This ensures clients get prompt written confirmation of price, quantity and charges. Longer periods such as 7 or 30 days, or waiting until settlement, do not comply with the rule.

  1. AWithin 24 hours of the execution of the tradeCorrect
  2. BWithin 7 working days
  3. COn the settlement day only
  4. DWithin 30 days

Explanation

Brokers must issue contract notes to clients within 24 hours of the execution of trades. A 7-day or 30-day window is far too long. Issuing it only on the settlement day would breach the 24-hour requirement.

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