Format Of Common Contract Note NSE, BSE, MCX-SX,USE
A common contract note will be issued to investors with effect from 01 Apr 2014. All trading members (Brokers) in stock and currency exchanges have to follow this new contract note format on or before this date. At present different formats of contracts notes are issued to investors trading on different exchanges. Even in the same exchange the format of contract note is different for different segments. For Example, the format of contract note in equity segment is different from the note issued in derivatives segments.
To further streamline and have common contract note across all segments, exchanges in consultation with SEBI, other stock and currency exchanges (Which are under regulation of SEBI) and member association have brought this new format. Present system of different formats of contracts notes are confusing and difficult to reconcile to investors. Take the example of a trader who trades in NSE ( Cash, Currency, Derivatives), BSE (Cash) and MCX-SX(Currency). Even if the trader executes one trade each, at the end of the day he will have 5 contract notes and all with different formats. With this new format, which will be used across segments and exchanges, only one contract note will be issued with all relevant details.
The new format of common contract notes will be economical for brokers too as it will reduce printing and stationary costs as there is no need to issue separate notes for each segment and exchange. It will result in more economies and less complexities. On the investors end, they need not to refer multitude of contract notes to reconcile their trades, profit/loss calculations. It will be much easier to find out net obligations on any given day with a single contract note.
Important features in new format common contract notes across exchanges
New contract note format will have additional details which were not available in old format notes. As it will be unique across all exchanges and segments, it will have a mention of exchange/segment wise details for all trades. Trades on a day are printed exchange and segment wise. A single contract note number will be given. Separate settlement numbers will be printed exchange wise and segment wise and they may be different.
If client trading / back office code is different than UCC (Unique Client Code), then such code will be printed exchange wise and segment wise. Positions bought forward in case of derivative segments (If applicable) and trades done on the day of contract note are printed separately both exchange wise and segment wise.
Pay-in and Pay-out obligations, Securities Transaction Tax, Service Tax, Exchange Transaction Charges, SEBI Turnover fees, Stamp duty and Net amount payable and receivable by client are also printed both segment wise and exchange wise. Trade wise levies details are not printed on the contract note. But they should be provided by brokers if requested by investors.
As each exchange and segment have their own rules, bye-laws and regulations any dispute will be settled according to the rules applicable on the exchange traded. The following note will be printed on the contract note.
“Transactions mentioned in this contract note cum bill shall be governed and subject to the Rules, Bye-laws and Regulations and Circulars of the respective Exchanges on which trades have been executed and Securities and Exchange Board of India from time to time. The Exchanges provide Complaint Resolution, Arbitration and Appellate arbitration facilities at the Regional Arbitration Centres (RAC). The client may approach its nearest centre, details of which are available on respective Exchange’s website. Please visit www.bseindia.com for BSE, www.mcx-sx.com for MCX-SX, www.nseindia.com for NSE and www.useindia.com for USE.”
Operational guidelines are yet to be issued and there may be changes in details. Please refer circular. Also format of common contract note can be downloaded from this link in word format,