NISM Certifications · NISM-Series-VIII: Equity Derivatives · Sales Practices and Investors Protection Services
A trading member sells a client an index futures contract. Within what period must the member issue the contract note to the client under the exchange norms?
The contract note must be issued to the client within 24 hours of trade execution. This ensures timely written confirmation of trade details such as price, quantity and charges. Longer periods like seven days or a month do not comply with the norm.
- AWithin 24 hours of the execution of the tradeCorrect
- BWithin 7 days of the trade
- CAt the end of the month
- DOnly when the client requests it
Explanation
Stock brokers must issue contract notes to clients within 24 hours of the execution of the trade. Seven days or monthly timelines are not permitted, and issuance does not depend on the client asking for it.
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