What are the documents you should receive from your broker and when?

Order confirmation slip. After the order has been placed. Trade confirmation slip. After the trade has been executed. Contract Note: with in 24 hours of the trade being executed

How do I execute an order on the stock exchanges?

Select the broker you want to trade with opening an account and fulfill the other formalities. Place orders with the broker in writing. Ask for the order confirmation slip on the day the order is placed. Ask for trade confirmation slip on the day the trade is executed. Ask for contract note at the end of the trade date. Ensure smooth settlement of the trade by delivering securities and funds on time to your broker.

What is an ex-date?

The first day of the no-delivery is the ex-date viz. If there is any corporate benefit such as rights, bonus, dividend etc. announced for which book closure/record date is fixed, the buyer of the shares on or after the ex-date will not be eligible for the benefits.

What is a no-delivery period?

Whenever a book closure or a record date is announced by a company, the stock exchanges sets up a no-delivery period for that security. During this period, trading is permitted in the security. However, these trades are settled only after the no-delivery period is over. This is done to ensure that investor's entitlement for the corporate benefit is clearly determined.

What is a Book Closure/Record Date?

The ownership of shares of companies traded on the stock exchange is freely transferable by registration. However, shares are many times held by buyers without sending it for registration to the company. In order to be entitled to the benefits such as dividend, bonus, rights etc. announced by the company , a buyer would need to send it for registration. The company announces cut off dates from time to time. The list of members on the companies registers as of these cut off dates be the people entitled to the corporate benefits.

• What are the points to be checked by an investors to check the validity of a contract note?

Name and address of trading member, their SEC registration number, details of trade like order No. trade No. trade time, security name, quantity rate, brokerage, settlement no, signature of authorized signatory.

What is contract/confirmation note?

Contract note is a confirmation of trades done on a particular day for and on behalf of a client. A contract note issued in the prescribed format and manner establishes a legally enforceable relationship between the member and client in respect of the trades stated in that contract note. Contracts note are made in duplicate and the member and client both keep one copy each.