Verify the contract notes and statements

A Contract Note is a confirmation of trades done on a particular day on behalf of the client by a trading member.

i. Reconcile with actual:
On receipt of a contract note, one should ensure that the broker’s name, trade time, transaction price and brokerage tally with those of the actual transaction.

ii. Be aware of the charges:
The brokerage, service tax and STT are indicated separately in the Contract Note. It makes sense to be aware of these costs and use them in your calculations and verify them on receipt of the contract note.

iii. Check the holding statement:
At the end of the month, the trader receives a statement showing fund transactions and DP holding. One should check it carefully to make sure that the quantities and the shares are correctly mentioned.