Zerodha Contract Note Explained

Published on Monday, May 17, 2021 by Chittorgarh.com Team

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Zerodha Contract Note Explained

A contract note is a legal trade confirmation document issued by the stock broker for the trades executed on your behalf on the stock exchange.

Zerodha issues a combined contract note for all the trades executed across Equity, F&O, and Currency on NSE and BSE and a separate contract note for the Commodity segment every day. Zerodha sends an electronic contract note (ECN) in PDF format to their client's registered email address at around 7 PM.


Zerodha Contract Note Sample

 

Zerodha Contract Note Sample

 

The contract note of Zerodha contains all the required information as stipulated by SEBI and exchanges for a valid contract note.

A Zerodha contract note displays:

  • Trade details like Order Number, Trade Number, Trade Price, Trade execution Time, Instrument name, Quantity, Brokerage, and other Charges details.
  • Contract Note No, Trade date, Settlement No.
  • Trading member details like Name, address, SEBI registration number, Compliance officer details, registered exchanges, and DP details.
  • Client Details - Client UCC, PAN No, Client Name, Address
  • Signature of Authorized Signatories/Digital signature in case of ECN.
  • Bylaws and regulations related to Arbitration

How to read Zerodha Contract note?

For Zerodha Contract Note interpretation, we need to understand the most important section of the contract note that contains the trade details.

The trade details in the Zerodha contract note are split into two parts. The first part contains the trade information that can help you verify your trades with exchange anytime. The second part contains the details of brokerage and other charges.

Column Name Description

Order Number

Displays the exchange order number

Order time

Displays the time when the order got placed with the exchange

Trade Number

Displays the exchange trade no.

Trade Time

Displays the time when the order got executed on the exchange

Security/contract description

Displays the name of the instrument traded

Buy/sell

Reflects the transaction type

Quantity

Reflects the quantity of stock executed

Gross rate per unit

Shows the trade price at which the order got executed

Brokerage per unit

Left blank as Zerodha displays brokerage charges separately

Net rate per unit

Same as the gross rate per unit as Zerodha shows brokerage separately

Closing rate per unit

(Applicable only for the derivative contracts)

Displays the price at which the contract closed for the day.

Net total before levies

Total amount before brokerage and other taxes.

Brokerage Charges in Contract Note

The brokerage charges and other regulatory fees are segregated exchange-wise, segment-wise and shown separately below the trade details. The charges include brokerage, STT, GST, Stamp Duty, Exchange transaction taxes, and SEBI Turnover fees. It does not include DP charges, call & trade charges, and auto square-off charges that get charged over and above the displayed charges, whenever applicable.

Column Name Description

PAYIN/PAYOUT OBLIGATION

The total transaction amount before taxes and brokerage fee.

Taxable value of Supply (Brokerage)

The fee charged by broker for the services they offer. i.e. Zerodha brokerage charge is Rs 20 per trade for Intraday and F&O and Rs 0.01 for Equity delivery trade.

Exchange Transaction Charges

The fee is charged by an exchange (BSE, NSE, MCX) for using its platform.

Clearing Charges

The fee is charged by the clearing agent hired by the brokers to clear the trades. If the broker is also an authorised clearing agent for a particular segment, they don't charge this fee.

CGST

Central GST is charged at 9% if the state where you live in the same as the state of your broker's billing address.

SGST

State GST is charged at 9% if the state where you live in the same as the state of your broker's billing address.

IGST

Inter-State GST is charged at 18%. It is the GST tax levied if you live in a different state from the state of your broker's billing address.

UTT

Union Territory Tax if you live in a union territory.

Security Transaction Tax

The STT is a tax by the Government of India on Security transactions at stock exchanges. This is charged only on the sell side for intraday and F&O trades and on both sides for delivery trades in equity. There is no STT on Bonds, Currency and Mutual funds.

Stamp Duty

Stamp duty is a government tax in India on trading in stocks, currency derivatives and commodities.

Net amount receivable by Client / (payable by Client)

The net payable/receivable amount by the client.

Note:

  • You can request Zerodha to provide a trade-wise break up of applied charges if required. Alternatively, you can also use the brokerage calculator to help you calculate and verify the brokerage charges and other charges reflected on your contract note.
  • If the net amount is within brackets, it depicts that you need to pay Zerodha for stocks purchased or for the loss incurred on your trades.

    Note: Zerodha charges with delayed payment charges if there is an insufficient balance in your Zerodha trading account for the above dues.

  • If the net amount is without brackets, Zerodha will credit your Zerodha trading account with the sale proceeds or the profit booked.

Zerodha Contract Note Charges

Zerodha does not levy any charges to issue the electronic contract note as it is a legal obligation of every broker. Zerodha sends the contract note PDF to your registered email address at around 7 PM on the trade execution day.

However, if you request a physical copy of a contract, Zerodha charges Rs. 20 per contract plus the courier charges.


Zerodha Contract note download

Zerodha also provides an option to their clients to download the contract note from Zerodha Console whenever required.

You can use this option to download any back-dated contract note (from April 2017 onwards) or in case you do not receive the contract note on your registered mail id due to technical issues.

Zerodha sends a mail to your registered address with the contract note details requested for download. The password to open the Zerodha contract note is your PAN number.

 

Download Zerodha Contract Note from Console 1

 

 

Download Zerodha Contract Note from Console 2

 


Conclusion

To summarize in a nutshell, below are the features of a Zerodha Contract note:

  • Zerodha issues a combined contract note.
  • The contract note doesn't include demat account charges.
  • The contract notes in Zerodha are sent to your registered mail id at no cost within 24 hours of trade execution
  • Zerodha provides an option to their clients to download old contract notes through Console at any time.

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Frequently Asked Questions

  1. 1. What is Contract Note in Zerodha?

    A contract note in Zerodha is a legal trade confirmatory note that contains the details of your trades executed on a particular exchange.

    Zerodha issues a combined contract note for the trades executed across all segments on NSE and BSE on the registered mail id. The brokerage details are displayed separately in the Zerodha contract note along with other charges and taxes.

    You can also download the contract notes from Zerodha Console.

     

  2. 2. When will I get the contract note in Zerodha?

    Zerodha sends the contract note to the registered email id of clients generally by 7 PM on the trade execution day.

    However, sometimes there can be a slight delay in the processing and issuance of contract notes if the transaction files get delayed from the exchange.

    You can also download the contract note from Zerodha Console if you do not receive the contract notes due to some technical issues.

     

  3. 3. How to download contract notes in Zerodha?

    The contract notes in Zerodha are available in the back-office platform of Zerodha - Console.

    Steps to download contract notes in Zerodha:

    1. Visit the console.zerodha.com website.
    2. Log in using your Zerodha Kite credentials.
    3. Go to the 'Reports' section.
    4. Select 'Downloads'
    5. Enter the relevant parameters from the drop-down list for the below:
      • Statement - Contract Note
      • Date range - Input the required date range up to 1 year for any period from April 2017 onwards.
      • Category - Select the required segment.
      • Report type - Select the desired report type in which you would like to view the contract note.
      • Trade type - Contract Note.
    6. Click on Email.

    You will receive an email on your registered mail id with Zerodha (generally within 15 minutes) with the requested contract note details. The contract notes are password protected with your PAN number.

     

  4. 4. What is the Zerodha Contract Note password?

    Zerodha's Contract Note password is the PAN number of the customer. The password is case-sensitive. Zerodha customers should use the PAN number to open the PDF Contract note sent via email.

     

  5. 5. How to get a contract note in Zerodha?

    As a part of the Zerodha account opening, you need to indicate the mode of contract note you wish to receive from Zerodha in the account opening form under the additional details.

    For an Electronic Contract note (ECN), you need to provide a email address for its receipt.

    If you opt to receive the contract notes in physical form, Zerodha charges Rs 20 per contract note plus the courier charges.

    Zerodha also provides an option to download the old contract notes from Console - Zerodha's back-office platform.

    Steps to get a Contract Note in Zerodha

    • Visit the console.zerodha.com website.
    • Log in with your Zerodha Kite credentials.
    • Go to the 'Reports' section.
    • Select 'Downloads' and click on 'Contract Note'.
    • Select the category, date, report type, & trade type from the drop-down boxes
    • Click on the 'Download' button.

     

  6. 6. How to check contract notes in Zerodha?

    You can check the contract notes in Zerodha on your registered mail id provided to Zerodha at the time of account opening for receipt of ECN. Zerodha sends password-protected PDF files on email as required by exchange regulations. The password to open the Zerodha contract note is your PAN number.

    Alternatively, you can also download the contract notes from Zerodha Console for the required segment and date range. Zerodha has stored the contract notes in Console from April 2017 onwards. The contract notes are available for download under the Reports option.

     

  7. 7. Where to find contract note in Zerodha?

    The contract notes in Zerodha are available for download in Console, the back-office platform of Zerodha.

    To see the contract note in Zerodha, you need to log in to Console and go to Reports>> Download. You can download the contract note for the required segment and period from April 2017 onwards. You will receive a mail from Zerodha with the details of the contract notes requested.

     

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