Specify to the Broker / Sub - broker, the exchange through which your trade is to be executed and maintain separate account for each exchange.
Obtain a valid Contract Note from the Broker / Sub-broker within 24 hours of the execution of the trade. Contract note is a confirmation of trade(s) done on a particular day for and on behalf of a client in a format prescribed by CSE. It establishes a legally enforceable relationship between the Trading Member and his Client in respect of settlement of trades executed on CSE as stated in the Contract Note. Contract Notes are made in duplicate, and the Trading Member and Client, both keep one copy each. The Client is expected to sign on the duplicate copy of the Contract Note, confirming receipt of the original.
- Contract Note - Form 'A' - Contract Note issued where Member is acting for constituents as brokers/ agents.
- Contract Note - Form 'B' - Contract Note issued by Members dealing with constituents as principals.
Ensure that the Contract Note contains: SEBI registration number of the Trading Member/ Sub – broker Details of trade such as, Order no, trade no., trade time, quantity, price, brokerage, settlement number, details of other levies.
Trade price should be shown separately from the brokerage charged.
The maximum brokerage that can be charged is Rs.0.25 per share/debenture or 2.5% of the contract price per share / debenture whichever is higher. This maximum brokerage is inclusive of the brokerage charged by the sub-broker (Sub-brokerage cannot exceed 1.5% of the contract price.) Any additional charges that a Trading Member can charge are Service Tax on the brokerage, any penalties arising on behalf of client and Securities Transaction Tax (STT).
The brokerage, service tax and STT are required to be indicated separately in the Contract Note.
Signature of authorised representative.
Arbitration clause stating that the Courts in Mumbai shall have exclusive jurisdiction in respect of all proceedings to which the Exchange is a party, and in respect of all other proceedings, the Courts having jurisdiction over the area in which the respective Regional Investor Service Centre is situated, shall have jurisdiction, must be present on the face of the Contract note.