Console Contract notes
Overview
A contract note is a legally binding document issued by a stockbroker to a client confirming the details of trades executed during a trading session on a specific date. For clients of Zerodha, contract notes are generated daily for every trading day on which at least one order was executed, and are accessible through Zerodha Console. The document carries a digital signature and constitutes a binding contract between the broker and the client under the Sale of Goods Act and the rules of the relevant exchanges.
Contract notes are one of the oldest and most rigorously regulated documents in the Indian securities market. Their format, content, delivery timeline, and record-keeping requirements are specified by SEBI, the National Stock Exchange, and the Bombay Stock Exchange, and have not been fundamentally altered since the transition from physical to electronic format in the early 2000s.
Regulatory basis
The issuance of contract notes is mandated by:
- SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992, Regulation 15, which requires every broker to issue a contract note within 24 hours of executing a trade.
- SEBI Circular SMD/Policy/Cir-6/2000 and SEBI Circular MIRSD/DPS-1/Dep/Cir-31/2003 – progressively established the requirements for electronic contract notes (ECN) with digital signatures.
- SEBI Circular CIR/MIRSD/16/2011 – consolidated the requirements for electronic contract notes, specifying minimum fields, delivery standards, and retention obligations.
- NSE Circular NSE/CMPT/46444 and equivalent BSE circulars – exchange-specific implementations of the SEBI framework.
- Information Technology Act, 2000 – gives legal validity to documents signed with a valid digital signature certificate (DSC) issued by a licensed certifying authority (CA) in India.
Zerodha uses a Class 3 DSC to sign all electronic contract notes. The DSC is issued by a certifying authority recognised by the Controller of Certifying Authorities (CCA) under the IT Act.
Contents of a contract note
A standard Zerodha contract note for equity or F&O trades contains the following sections:
Header
- Broker name, SEBI registration number, and exchange membership IDs (NSE/BSE member codes).
- Client name, client code, PAN, and registered address.
- Trade date and contract note number (unique sequential identifier).
Trade details table
Each executed trade appears as a row:
| Field | Description |
|---|---|
| Sr. no. | Sequential row number |
| Order number | Zerodha-assigned order ID |
| Trade number | Exchange-assigned trade ID |
| Order time | Timestamp of order placement (HH:MM:SS) |
| Trade time | Timestamp of execution |
| Security / Contract description | Scrip name, series, exchange |
| Buy/Sell | Direction of the trade |
| Quantity | Number of shares or lots |
| Gross rate / Trade price | Price at which the trade executed |
| Brokerage per unit | Broker’s fee per share or per lot |
| Net rate | Gross rate adjusted for brokerage |
| Closing rate | Exchange closing price (for MTM reference) |
| Remarks | System note (e.g., “Auction”, “Market making”) |
Charge summary
A separate section aggregates all charges for the day:
- Gross value of trades (buy side and sell side separately)
- Brokerage
- Securities Transaction Tax (STT)
- Stamp duty
- Exchange transaction charges (NSE/BSE levy)
- SEBI turnover fees
- GST on brokerage and exchange charges
- Net amount payable or receivable (the settlement obligation for the day)
Settlement details
- Settlement number
- Settlement type (normal, auction, compulsory delivery)
- Pay-in date (when the client must pay for purchases)
- Pay-out date (when sale proceeds are expected)
Digital signature block
The document closes with the digital signature of the broker’s authorised signatory, timestamp, and the name of the certifying authority. The signature can be verified using any PDF reader that supports PDF/A or PKCS#7 signature validation.
How to download contract notes from Console
- Log in to Zerodha Console at
console.zerodha.com. - Navigate to Reports > Contract notes in the left navigation.
- Select the date or date range. Contract notes are available date-by-date (one PDF per trading day per exchange-segment combination).
- Click the download icon for each date-segment combination.
Contract notes are also emailed automatically to the registered email address within 24 hours of trade execution, per SEBI requirements. The Console download is a persistent archive access point. Zerodha generates separate contract notes for NSE equity, BSE equity, NSE F&O, NSE currency, BSE currency, and MCX commodity segments on days when trades occur in those segments.
Email delivery and digital signature verification
Under SEBI Circular CIR/MIRSD/16/2011, a broker may issue contract notes exclusively by email (without paper copies) if the client has provided written consent. Zerodha operates entirely on a paperless basis with all clients consenting at account opening.
To verify the digital signature on an emailed contract note:
- Open the PDF in Adobe Acrobat or a compatible reader.
- Click the signature panel (typically shows a blue or green ribbon if the certificate chain is valid and the document has not been modified since signing).
- Verify that the certificate is issued to Zerodha Broking Limited by a recognised Indian CA.
- Confirm that the signing timestamp is within 24 hours of the trade date.
If the signature panel shows a red X or “Document has been modified,” the file has been tampered with and the contract note should be re-downloaded from Console.
Legal significance
The contract note functions as a legal contract between the broker and client. Its key legal implications are:
Evidence of trade execution. In the event of a dispute over whether a trade was authorised or executed at the stated price, the contract note – with its exchange-assigned trade number – is the primary evidentiary document. Exchange records corroborate the trade number independently.
Limitation period for disputes. SEBI and exchange regulations require that clients raise objections to a contract note within 24 hours of receipt (or the close of the next trading day). Failure to object within this period is deemed acceptance of the terms. This timeline is strict; clients should review contract notes promptly upon receipt.
Stamp duty compliance. Stamp duty on securities transactions is payable on the contract note value. Since FY2020-21, stamp duty is collected at source by the exchange and remitted to the relevant state government, and appears as a line item on the contract note. The contract note thus serves as proof of stamp duty payment.
Income tax. Contract notes are admissible as evidence of the price paid or received for a security during an income tax assessment. For inherited or gifted shares transferred off-market, the contract note of the original buyer (if it can be obtained) establishes cost for the recipient.
Retention requirements
SEBI requires brokers to retain contract notes for five years. Zerodha mirrors this on Console: contract notes are accessible online for five financial years.
Clients are advised to:
- Download and archive contract notes annually (at a minimum, end-of-financial-year bulk download).
- Store them alongside the corresponding Tradebook and Tax P&L statement for each year.
- Retain them for at least six years to cover the Income Tax Act’s scrutiny assessment window (Section 149).
Common issues
Missing contract note for a specific date. If a contract note is absent for a day when trades appear in the Tradebook, the most common cause is that the segment filter is set incorrectly (e.g., NSE-F&O and NSE-EQ have separate contract notes). Switching the segment filter usually resolves this.
Discrepancy between contract note and ledger. The net amount payable/receivable on the contract note should correspond to the settlement entry in the Funds statement / Ledger for the same settlement number. A discrepancy may indicate a subsequent adjustment (auction settlement, error correction) and should be queried with Zerodha support.
Multiple contract notes for the same day. A single trading day may produce multiple contract notes if the client traded in more than one segment (e.g., both NSE EQ and NSE FO). Each segment-exchange combination gets its own contract note.
Pre-open session trades. Trades executed in the pre-open call auction (09:00 to 09:15 IST) are included in the regular trading day contract note, not issued separately.
Related reports
- Console Tradebook – raw trade records across all dates.
- Console Funds statement – ledger showing settlement debits and credits corresponding to contract note obligations.
- Console Tax P&L statement – aggregated P&L derived from trade data.
- Console Holdings report – portfolio view updated after each settlement.
References
- SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992, Regulation 15 – Contract note issuance obligation.
- SEBI Circular CIR/MIRSD/16/2011 – Electronic contract notes: format, delivery, and retention.
- SEBI Circular SMD/Policy/Cir-6/2000 – Early framework for electronic contract notes.
- Information Technology Act, 2000, Section 3 – Legal validity of digital signatures.
- NSE Circular NSE/CMPT/46444 – NSE-specific contract note requirements.
- Zerodha Support, “Where can I find my contract notes?” –
support.zerodha.com. - Controller of Certifying Authorities, India – List of licensed certifying authorities:
cca.gov.in.