NIFTY 5022,500125.30(0.56%)
SENSEX74,200412.50(0.56%)
BANK NIFTY48,300210.40(0.43%)
TATA MOTORS780.0012.45(1.62%)
INFOSYS1,520.0018.20(1.18%)
WIPRO475.005.60(1.19%)
RELIANCE2,890.0034.50(1.21%)
TCS3,650.0028.10(0.76%)
HDFC BANK1,580.0015.20(0.97%)
ICICI BANK1,120.008.90(0.80%)
SBI820.005.30(0.64%)
BHARTI AIRTEL1,650.0022.80(1.40%)
HUL2,380.0012.40(0.52%)
ITC445.003.20(0.72%)
KOTAK BANK1,780.0014.60(0.83%)
LT3,420.0045.20(1.30%)
AXIS BANK1,080.009.50(0.89%)
BAJAJ FINANCE7,200.0085.40(1.20%)
MARUTI12,400150.00(1.19%)
ASIAN PAINTS2,850.0018.90(0.67%)
HCLTECH1,420.0016.30(1.14%)
TITAN3,250.0042.60(1.33%)
ADANI PORTS1,380.0022.40(1.60%)
POWER GRID310.004.80(1.57%)
NTPC365.006.20(1.73%)
SUNPHARMA1,680.008.50(0.50%)
NIFTY 5022,500125.30(0.56%)
SENSEX74,200412.50(0.56%)
BANK NIFTY48,300210.40(0.43%)
TATA MOTORS780.0012.45(1.62%)
INFOSYS1,520.0018.20(1.18%)
WIPRO475.005.60(1.19%)
RELIANCE2,890.0034.50(1.21%)
TCS3,650.0028.10(0.76%)
HDFC BANK1,580.0015.20(0.97%)
ICICI BANK1,120.008.90(0.80%)
SBI820.005.30(0.64%)
BHARTI AIRTEL1,650.0022.80(1.40%)
HUL2,380.0012.40(0.52%)
ITC445.003.20(0.72%)
KOTAK BANK1,780.0014.60(0.83%)
LT3,420.0045.20(1.30%)
AXIS BANK1,080.009.50(0.89%)
BAJAJ FINANCE7,200.0085.40(1.20%)
MARUTI12,400150.00(1.19%)
ASIAN PAINTS2,850.0018.90(0.67%)
HCLTECH1,420.0016.30(1.14%)
TITAN3,250.0042.60(1.33%)
ADANI PORTS1,380.0022.40(1.60%)
POWER GRID310.004.80(1.57%)
NTPC365.006.20(1.73%)
SUNPHARMA1,680.008.50(0.50%)
NIFTY 5022,500125.30(0.56%)
SENSEX74,200412.50(0.56%)
BANK NIFTY48,300210.40(0.43%)
TATA MOTORS780.0012.45(1.62%)
INFOSYS1,520.0018.20(1.18%)
WIPRO475.005.60(1.19%)
RELIANCE2,890.0034.50(1.21%)
TCS3,650.0028.10(0.76%)
HDFC BANK1,580.0015.20(0.97%)
ICICI BANK1,120.008.90(0.80%)
SBI820.005.30(0.64%)
BHARTI AIRTEL1,650.0022.80(1.40%)
HUL2,380.0012.40(0.52%)
ITC445.003.20(0.72%)
KOTAK BANK1,780.0014.60(0.83%)
LT3,420.0045.20(1.30%)
AXIS BANK1,080.009.50(0.89%)
BAJAJ FINANCE7,200.0085.40(1.20%)
MARUTI12,400150.00(1.19%)
ASIAN PAINTS2,850.0018.90(0.67%)
HCLTECH1,420.0016.30(1.14%)
TITAN3,250.0042.60(1.33%)
ADANI PORTS1,380.0022.40(1.60%)
POWER GRID310.004.80(1.57%)
NTPC365.006.20(1.73%)
SUNPHARMA1,680.008.50(0.50%)
NIFTY 5022,500125.30(0.56%)
SENSEX74,200412.50(0.56%)
BANK NIFTY48,300210.40(0.43%)
TATA MOTORS780.0012.45(1.62%)
INFOSYS1,520.0018.20(1.18%)
WIPRO475.005.60(1.19%)
RELIANCE2,890.0034.50(1.21%)
TCS3,650.0028.10(0.76%)
HDFC BANK1,580.0015.20(0.97%)
ICICI BANK1,120.008.90(0.80%)
SBI820.005.30(0.64%)
BHARTI AIRTEL1,650.0022.80(1.40%)
HUL2,380.0012.40(0.52%)
ITC445.003.20(0.72%)
KOTAK BANK1,780.0014.60(0.83%)
LT3,420.0045.20(1.30%)
AXIS BANK1,080.009.50(0.89%)
BAJAJ FINANCE7,200.0085.40(1.20%)
MARUTI12,400150.00(1.19%)
ASIAN PAINTS2,850.0018.90(0.67%)
HCLTECH1,420.0016.30(1.14%)
TITAN3,250.0042.60(1.33%)
ADANI PORTS1,380.0022.40(1.60%)
POWER GRID310.004.80(1.57%)
NTPC365.006.20(1.73%)
SUNPHARMA1,680.008.50(0.50%)
NISM VII — Securities Operations & Risk Management ~5 min read

Contract Note, Brokerage and Charges

A Contract Note is the legal record of every trade — it must be issued within 24 hours of execution and establishes a legally enforceable relationship between b...

Definition

Contract Note + Full Cost Stack

A Contract Note is the legal record of every trade — it must be issued within 24 hours of execution and establishes a legally enforceable relationship between broker and client. Charges include brokerage, STT, exchange transaction charges, SEBI fee, GST on brokerage, stamp duty, and IPFT (Investor Protection Fund Trust) charge.

In Simple Words
💡

The contract note is issued digitally (signed with Digital Signature Certificate) or physically, within 24 hours of trade. It shows: trade date + time, scrip, qty, rate, brokerage, STT, exchange fee, stamp duty, SEBI fee, GST, net consideration. Brokerage is negotiable (₹0–0.5% typical range). STT: 0.1% on delivery-buy + 0.1% on delivery-sell; 0.025% on intraday sell only; 0.02% on futures sell; 0.125% on options premium (on sale). Stamp duty is state-driven but standardised post-2020: 0.015% on delivery, 0.003% on intraday/F&O — only on BUY side. GST at 18% on brokerage + exchange fee. The total "all-in cost" matters for net return calculations.

📄
Contract Note = Legal Proof

Without it, no enforceable claim

💰
Brokerage

The only component that's negotiable

🏛️
STT = Government Tax

Different rates for delivery, intraday, F&O

⚖️
GST Everywhere

18% on brokerage + exchange charges

Real-Life Scenario

A Practical Example

📊
Ravi
Real-Life Scenario
Ravi buys 100 Reliance @ ₹2,400 = ₹2,40,000 on delivery basis through Zerodha:
• Brokerage: ₹0 (Zerodha equity-delivery free)
• STT (0.1% buy): ₹240
• Exchange fee (NSE cash ≈ ₹325/Cr): ₹7.8
• SEBI fee (₹10/Cr): ₹2.4
• GST (18% on exch fee): ₹1.4
• Stamp duty (0.015% buy): ₹36
• DP charges on sale day (Zerodha CDSL): ₹15.93 flat + 18% GST ≈ ₹18.8
Net cost: ₹2,40,306 — implicit ~0.13% all-in
Key Points to Remember

What Makes This Important

💰
Contract note issued within 24 hours of trade
🤖
Digital contract note signed with DSC — legally valid
🪙
STT: 0.1% delivery buy + 0.1% sell; 0.025% intraday sell; 0.125% option premium (sale)
⚖️
Stamp duty: 0.015% delivery buy, 0.003% intraday/F&O buy (only buy side)
🎯
GST 18% on brokerage + exchange + SEBI fee
🧠
Brokerage is the only negotiable component
⏸️
IBT/WT apps must display brokerage upfront at order placement
FAQs

Frequently Asked Questions

No. Intraday STT is levied only on the SELL leg, at 0.025%. The rationale: intraday means no change of beneficial ownership — STT effectively taxes the notional transaction.

Test Your Knowledge

🧠 Quick Quiz

2 questions to check your understanding

2
Questions
Question 1 of 2

A Contract Note must be issued to the client within _____ of trade execution.

Summary Notes

Key Takeaways

Contract note = 24-hr legal record
Charges: brokerage + STT + exchange + SEBI + stamp + GST + IPFT
Brokerage is only negotiable item
Previous Topic
Order Types and Trade Management
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