What Are the Key Enhancements in the Revised Contract Note?

We’re introducing a new and improved Contract Note format, effective for all trades executed on or after April 1, 2025. This change is designed to offer a more consolidated, transparent, and user-friendly view of your trades.

Here’s what’s changing compared to the earlier format:

✅ 1. Single Consolidated Contract Note
Earlier:
You used to receive separate contract notes for each segment — Equity, F&O, and Commodities — leading to multiple notes for a single trading day.
Now:
You’ll receive a single consolidated contract note — simplifying your trade records and making it easier to track your trades across segments.

Here’s how it works:

• If you trade in Equity and F&O only:
  • You’ll receive one consolidated contract note at the end of the trading day covering both segments.
  • Final obligations will be as per this consolidated note.
• If you trade in Equity, F&O, and Commodities:
  • You’ll receive two notes:

1. Contract note consisting trades in Equity and F&O post market closes.
2. A final consolidated contract note after the Commodity market closes, covering all segments.

Final obligations will be as per the consolidated note.

How to Identify Your Contract Note:

• Contract notes excluding Commodities will display an identifier on the right-hand side with the label:
  👉 (Excluding Commodities Segment)

• Contract notes including Commodities will display:
  👉 (Including Commodities Segment)

This update ensures better clarity and a seamless trading experience across all your trades.

✅ 2. Trade-Level Representation
Earlier:
Trade details were shown at the scrip and order level, showing a single entry with the average price for your order.
Now:
All trade information is shown at the individual trade level, offering greater clarity and detail.
Example:
You place one order to buy 100 shares of XXX Ltd.

• Earlier View:
  • Single entry – Buy 100 shares @ ₹250 (average price)
• Now: Multiple entries reflecting actual execution:
  • Buy 40 shares @ ₹251
  • Buy 30 shares @ ₹249.50
  • Buy 30 shares @ ₹250 This gives you a clearer view of how your order was executed in the market.

✅ 3. Updated Taxable Value of Supply
Earlier:
The Taxable Value of Supply included only brokerage.
Now:
It will include Brokerage, Exchange Transaction Charges, and SEBI Turnover Fees, giving you a more complete picture of chargeable components in your contract note.

✅ 4.New File Format & Access Method
Earlier:
Your contract note was accessible via a webpage, with no password protection.
Now:
You’ll receive your contract note as a PDF file, which is password-protected for enhanced security.

• Use your PAN (in uppercase, without spaces) to open the file.

✅ 5. Contract Note Cum Bill
Earlier:
A separate Derivative Bill was issued along with the contract note, and Brought Forward (B/F) positions were shown separately.
Now:
The contract note itself will serve as a Contract cum Bill — no separate derivative bill will be issued.
B/F positions will be shown within the contract note for all derivative segments, giving you a single consolidated view of your trades and positions.

These enhancements are part of our ongoing efforts to improve transparency, simplify communication, and enhance your overall trading experience.
For any queries, feel free to contact our support team.

How to read Contract Note?

A contract note includes essential information such as:

• Trade details (Exchange, Segment, Trading Number)
• Clearing member information
• Unique Client Code (UCC)
• Regulatory charges (Exchange transaction Charges, Sebi fees, Stamp duty, STT, GST and other applicable taxes
• Settlement details along with regulatory compliance information

The contract note follows the format prescribed under the SEBI (Securities and Exchange Board of India) regulations, ensuring transparency and legal compliance

The details in the contract note will be on trade level. Previously, trades were shown as a single entry with an average price; now, each trade is listed separately for better clarity.

Key Columns and What They Mean

1. Exchange and Segment Details

• Exch: Indicates the exchange where the trade took place. In this case, it’s NSE (National Stock Exchange).

• Cl. Segment: Refers to the segment of the exchange, here it is CM (Cash Market). For Derivatives, it will come as FO (Future & Options).

• Cl. Book Type : Refers to the type of the settlement, here it is T1-Normal (Normal T+1 day settlement).

  • For derivatives, it will come as Futures.
  • For Trade to Trade (T2T) Settlement ,it will come as T1 Depos

• Product: Product can be default or MTF depending on the type you have traded.

2. Order and Trade Information

• Order No.: A unique identifier assigned to your order. It helps in tracking the status and details of your order.
• Order Time: The exact time at which your order was placed.
• Trade No.: The unique number assigned to the executed trade.
• Trade Time: The time when the trade was successfully executed.

3. Security/Contract Description

• Provides details about the security that was traded.
• ISIN: The International Securities Identification Number, a unique identifier for the security.
• For example:
  • ARAVIND LTD. (INE034A01011)

4. Buy/Sell Indicator (B/S)

• B: Indicates a Buy transaction.
• S: Indicates a Sell transaction.
• For example:
  • ARAVIND LTD. was sold (S).

5. Quantity and Price Details

• Quantity: The number of shares traded.
• Gross Rate/Trade Price: The rate at which the security was traded.
• Gross Rate Trade Price Per Unit: The price per unit excluding brokerage and taxes.

6. Brokerage and Charges

• Brokerage per Unit: The brokerage charged per unit of the security.
• Net Rate per Unit: The rate after brokerage is applied.
• Closing Rate per Unit: Applicable only for derivatives, this indicates the rate at market close.

7. Net Total (Before Levies)

• The net amount before taxes, and other charges are applied.
• Positive values indicate a credit (Payable by you), while negative values indicate a debit (Payable to you)

8. Settlement Information

• Settlement Date: The date when the trade is settled.
• Settlement Number: A unique identifier associated with the settlement of the trade.

9. Transaction level details

• Buy Average : This represents the average buying price of all the shares bought in this transaction
• Sell Average: This represents the average selling price of all the shares sold in this transaction.
• Net Average:
  
  • Quantity** = Buy Average Quantity –Sell Avg Quantity
    
  • Net Total (Before Levies) = (Net Total BUY Average * Closing rate) – (Net Total Sell Average*Closing Rate)
    = (690 *183) – 0
    = 126270
• **Net Average price (Reflecting under Closing Rate) = Net Total / Net Average Quantity **
  In this case both are same as there is no Sell Transaction is executed Brokerage is included in Net Average

In this case both are same as there is no Sell Transaction is executed Brokerage is included in Net Average

10. Debit and Credit Totals: This section reflects the net totals after adding all charges.

• Debit Total: This represents the total debit for the corresponding segment. Will get repeated in all segments (This is inclusive of all charges ,Refer the Payin / Payout Summary table at the end for charges summary.
  ₹1,26,419.74 is the total debit in this case which is inclusive of all charges for Cash Segment
• Credit Total: This represents the total credit for the corresponding segment. Will get repeated in all segments As there are no Sell transactions.
  In this case this is 0 as there is no Sell transaction for this segment

11. Net Amount Due : (Credit Total – Debit Total)

• Final payable/receivable amount after adjusting debits and credits.
• ₹1,26,419.74 is the net amount due to us.
• If there are net sell transaction, there will be amount due to the client’s account.

The final “Amount Due to You/Us” is the definitive payable/receivable amount and aligns with your ledger balance. Minor differences may arise due to rounding off or display restrictions to two decimal places.

For Derivative Segment:

1.Closing Rate and Net Total

• Closing Rate per Unit (for Derivatives): Applicable for futures and options contracts, this shows the closing rate for mark-to-market (MTM) settlement.
• Quantity: The number of shares traded.
• Gross Rate/Trade Price: The rate at which the security was traded.
• Gross Rate Trade Price Per Unit: The price per unit excluding brokerage and taxes.
• Net Total (Before Levies): Reflects the total profit or loss before adding taxes and charges.

2.Transaction level details:

• Buy Average: Closing rate for all buy transactions. Quantity column will contain sum of all the quantities bought on T day.
• Sell Average: Closing rate for all sell transactions. Quantity column will contain sum of all the quantities bought on T day.
• Net Average: (Buy Avg – Sell Avg ) Qty Column is blank because it’s netted off in this case. And net total is 2870.00-2972.50 = -102.50

3.Additional Details:

• P” Indicator:
  • Cash Segment - Physical Delivery due to Expiry of Derivatives contract
  • Derivatives Segment - Expected to be converted into Physical Delivery on Expiry

4.Brought Forward Positions:

• The carry forwarded positions will be represented with a “B/F” symbol under the Order No. column and there will be no trade / Order details for this contracts.
• The charges for the same will be Not applicable so all the corresponding charges columns are zero.

5. Debit and Credit Totals

• Debit Total: The sum of all charges, brokerage, and applicable levies deducted from your account.
• Credit Total: Any credit adjustments applied to your account.
  

Understanding GST, SEBI Fees, and Final Settlement

Exchange /Segment / product: The number of rows will bifurcated amongst different exchanges, segment and product type.In this case there are 3 different exchanges and hence 3 rows.

This section summarizes the pay-in and payout across segments.

✅ Breakdown:

• Pay In/Pay Out Obligation: (Inclusive of brokerage & exclusive of other charges levied)

• Securities Transaction Tax (STT): STT stands for Securities Transaction Tax, is a transaction tax where the investor has to pay a small tax on the total consideration paid or received in a share/securities/stock transaction.

• Commodity Transaction Tax: Applicable tax on Commodity trades (If any).

• Exchange Transaction charges: Exchange transaction charges are fees levied by stock exchanges for conducting trades.

• SEBI Fees: Regulatory fees charged by the Securities and Exchange Board of India.

• Carry Forward Total: Total of all charges added with Payin/out so far

• B/f Total : The C/f Total has been retained for calculation

• CGST : (Central Goods and Services Tax) : Taxable Value of Supply * 9%

• SGST : (State Goods and Services Tax) : Taxable Value of Supply * 9%

• Net Amount Receivable /Payable :

  • Reflects the final net amount after considering all trades, charges, and taxes.
  • Positive value: Amount payable by the client
  • Negative value: Amount payable to the client.
  • Net Amount Receivable /Payable = -5672.90 + 8 + 10.96 + 0.02 + 0.30 + 29.53 + 29.53 = -5594.56

• Taxable value of supply : It will include Brokerage, Exchange Transaction Charges, and SEBI Turnover Fees.

Disclaimer: A contract note is an official document that records all stock market transactions made through a broker on a specific day. Kotak Securities delivers these notes to the registered email on the trade date. Additionally, they can be accessed and downloaded from the platform.

To Download your contract Note : Click Here --> select Contract Note & Download

Click here to explore more about the enhanced ledger structure.