What is a Contract Note?

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Contract Note is a confirmation of trades done on a particular day on
behalf of the client by a trading member. It imposes a legally
enforceable relationship between the client and the trading
member with respect to purchase/sale and settlement of
trades. It also helps to settle disputes/claims between the
investor and the trading member. It is a prerequisite for
filing a complaint or arbitration proceeding against the
trading member in case of a dispute. A valid contract
note should be in the prescribed form, contain the details
of trades, stamped with requisite value and duly signed
by the authorized signatory. Contract notes are kept in
duplicate, the trading member and the client should keep
one copy each. After verifying the details contained
therein, the client keeps one copy and returns the
second copy to the trading member duly acknowledged
by him.