Why do I receive a contract note whenever I trade/invest?
Whenever you make a trade or investment, you receive a Contract Note because it serves as an official confirmation of the trades executed on your behalf by the stock broker (FYERS). This document not only reaffirms the actions taken on a given trading day but also establishes a legally binding relationship between you (the client) and FYERS.
Key purposes of the Contract Note:
- Proof of Trade: It provides a clear record of the trades executed, including details such as security names, quantities bought or sold, and at what prices.
- Transparency: All associated charges, such as brokerage fees, STT/CTT, GST, and other transactional charges, are detailed out, ensuring you are aware of all costs related to the trade.
- Legal Security: The Contract Note acts as a binding agreement between you and FYERS, ensuring both parties adhere to the terms of the trade and any associated settlements.
- Regulatory Compliance: Issuing a Contract Note is mandated by regulatory bodies to maintain a transparent and accountable trading ecosystem.
Receiving a Contract Note ensures your interests are protected, and you have a documented trail of your trading activities. It's essential to review these notes regularly for accuracy and for your own record-keeping.
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