NISM Certifications · NISM-Series-VII: Securities Operations and Risk Management · Introduction to Securities Broking Operations
A trading member has issued a contract note for trades executed on a trading day. By when should the contract note ordinarily be issued to the client under exchange/SEBI rules?
A contract note must ordinarily be issued to the client within 24 hours of the execution of the trade, in the prescribed format. Waiting until year end, 30 days, or a client request would breach the rule requiring timely confirmation of trades.
- AWithin 24 hours of the execution of the tradeCorrect
- BWithin 30 days of the trade
- CAt the end of the financial year
- DOnly on the client's written request
Explanation
Contract notes are required to be issued to clients within 24 hours of the execution of trades, in the prescribed form. The other timelines are far too long or conditional.
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