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Dealing with your broker

How do I place my orders with the broker or sub broker?

You can either go to the broker's /sub broker's office or place an order over the phone /Internet or as defined in the Model Agreement.

How do I know whether my order is placed?

The Stock Exchanges assign a Unique Order Code Number to each transaction, which is intimated by broker to his client and once the order is executed, this order code number is printed on the contract note.

The broker member has also to maintain the record of time when the client has placed order and reflect the same in the contract note along with the time of execution of the order.

What documents should be obtained from broker on execution of trade?

You have to ensure receipt of the following documents for any trade executed on the Exchange:

  • Contract note in Form A to be given within stipulated time.

  • In the case of electronic issuance of contract notes by the brokers, the clients shall ensure that the same is digitally signed and in case of inability to view the same, shall communicate the same to the broker, upon which the broker shall ensure that the physical contract note reaches the client within the stipulated time.

  • Purchase/sale note or confirmation memo in the case of a sub broker. However, once the tripartite agreement between broker-sub-broker and client comes into effect, the broker will only issue the contract notes.

    It is the contract note/purchase or sale note (confirmation memo) that gives rise to contractual rights and obligations of parties of the trade. Hence, you should insist on contract note from stockbroker and purchase/sale note (confirmation memo) from sub broker.

    What details are required to be mentioned on the Contract note issued by the Stock Broker?

    A broker has to issue a contract note to clients for all transactions in the form specified by the stock exchange.

    The contract note inter-alia should have following:

  • Name, address and SEBI Registration number of the Member broker.

  • Name of partner /proprietor /Authorised Signatory.

  • Dealing Office Address/Tel No/Fax no, Code number of the member given by the Exchange.

  • Unique Identification Number
  • * Contract number, date of issue of contract note, settlement number and time period for settlement.

  • Constituent (Client) name/Code Number.

  • Order number and order time corresponding to the trades.

  • Trade number and Trade time.

  • Quantity and Kind of Security brought/sold by the client.

  • Brokerage and Purchase /Sale rate are given separately.

  • Service tax rates and any other charges levied by the broker.

  • Securities Transaction Tax (STT) as applicable.

  • Appropriate stamps have to be affixed on the original contract note or it is mentioned that the consolidated stamp duty is paid.

  • Signature of the Stock broker/Authorized Signatory.

    In case of purchase and sale note provided by the sub broker, following additional information is provided:

  • Name and SEBI Registration No. of sub-broker.

  • Name of affiliating trading member.

  • Purchase/sale note number.

  • Corresponding contract note issued by the broker for relevant trade number along with the date of contract.

    www.sebi.gov.in

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