Books, Records and Margin Reporting
Under SEBI (Stock Brokers) Regulations 1992 and SCRR 1957, brokers must maintain ~15 statutory books and registers — ranging from client ledger, Register of Tra...
Statutory Books + Retention
Under SEBI (Stock Brokers) Regulations 1992 and SCRR 1957, brokers must maintain ~15 statutory books and registers — ranging from client ledger, Register of Transactions (sauda book), margin register, contract-note book, to trial balance and bank reconciliation. Retention periods range from 2 years (sauda book) to 10 years (contract note book).
Key books: Register of Transactions (sauda book) — 2 yrs; Contract Note book — 10 yrs per Rule 15 SCRR; Client Ledger — 5+ yrs; Margin Register; Bank Ledger; Securities Register; Counter-Party Ledger; General Ledger; Trial Balance; Member Contract Book; Global Statement (sent monthly to client); Risk-based daily margin reporting to exchange. Failure draws penalties up to ₹1 crore. Brokers must send a Global Statement to each client monthly showing all positions + mark-to-market — missing it is a Code-of-Conduct breach.
Everything from trades to bank to client ledger
2 yrs sauda → 10 yrs contract note
Monthly summary sent to every client — SEBI mandate
Failure to maintain books draws serious penalty
A Practical Example
NSE inspects Zerodha's books for FY 2025. Inspectors verify: (a) sauda book matches trade logs from NEAT — any discrepancy is a red flag; (b) contract notes for a random sample match both NEAT and client acknowledgements; (c) margin register shows margin collected ≥ minimum required on every trade day; (d) Global Statement emails went to every client. One missing Global Statement for 100 clients over 3 months can trigger a ₹50L penalty + forced remediation.
What Makes This Important
Frequently Asked Questions
A consolidated monthly statement sent by the broker to every client showing all positions, open orders, margin, bank/ledger balances and MTM P&L. Mandatory under SEBI Code of Conduct. Failure to send = disciplinary action.
🧠 Quick Quiz
2 questions to check your understanding