A contract note is a confirmation of all your trades done on a particular day. Whenever you trade, a contract note will be sent to your registered email ID within 24 hrs. This is as per the format prescribed by the Securities and Exchange Board of India (SEBI).
A contract note is broadly divided into three parts:
- User information
- Trade Information
- Charges
User Information
This contains basic information such as the date for which this contract note was created, the trading code, the user’s name, and other details.
Trade Information
All the trade-related information will be shown here
Charges
This section has all the charges a user has to pay for the orders placed in the selected segment for a particular day.
The charges can be broadly categorized into:
1. Transaction changes
This includes the:
Securities/Commodities transaction taxes (STT/CTT)
Exchange and clearing transaction charges
Stamp duty
SEBI fees
2. Margin – the margin difference is calculated based on the T and T-1 closing prices. It includes the:
Exposure margin
Span margin
3. GST
18% GST is applicable on brokerage and other charges for all users
Notes:
Special charges like Account opening fees, Demat annual maintenance charges, Auto square-off charges, fines, MTF interest, fund transfer charges for net banking, and call-n-trade charges, etc. will not be shown in the contract note. Please check the ledger for such charges.