How to Read a Contract Note
The one document that proves every trade. What each line means and which charges you will see on it.
Urja Investment DeskInvestor education
A contract note is the legal record of the trades a broker executed for you on a given day. It is sent by email within 24 hours of the trade, digitally signed. If you ever dispute a trade, this is the document that matters.
The top of the page
- Your name, client code and PAN.
- The broker’s name, SEBI registration number and exchange membership.
- Trade date, settlement number and contract note number.
The trade table
One row per execution. Each row carries the order number and trade number given by the exchange, the time, the security, whether you bought or sold, quantity, price and the gross value. A single order filled in parts appears as several rows.
The charges
| Line | What it is | Who receives it |
|---|---|---|
| Brokerage | The broker’s fee for executing the trade | Broker |
| Exchange transaction charges | Fee for using the exchange | Exchange |
| Securities Transaction Tax (STT) | Tax on the transaction | Government |
| GST | Tax on brokerage and exchange charges | Government |
| SEBI turnover fees | Regulatory fee | SEBI |
| Stamp duty | Levied on the buy side | State government |
The bottom line
The net amount receivable or payable is what moves in your ledger for that settlement. Match it against your back-office ledger and your bank statement.
If something looks wrong
Raise it promptly. Write to customer care with the contract note number. If it is not resolved, the grievance email and the escalation path are printed on the note itself and on the Legal page of this site.
This article is for investor education. It is not investment, tax or legal advice and is not a recommendation to buy or sell any security. Investments in the securities market are subject to market risks; read all related documents carefully before investing.