Definition
Contract Note
A contract note is the legal document your broker issues confirming the details of trades executed on your behalf each day.
After you trade, your broker must send a contract note (typically by end of T+1) listing each trade's quantity, price, time, brokerage, STT, GST, stamp duty, exchange fees, and the net amount. It is the primary proof of your transaction.
In India, contract notes are now mostly digital (ECN, electronically signed) and serve as the basis for computing your capital gains tax. Always reconcile your contract note against your demat ledger and bank statement.
Related terms
- Securities Transaction Tax (STT)Securities Transaction Tax is a small tax levied on the purchase and sale of securities like listed shares and derivatives on Indian stock exchanges, collected at the time of trade.
- BrokerageBrokerage is the fee your stockbroker charges for executing your buy and sell orders, and it is only one part of your total trading cost.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.