Question

*Who issues the contract note in the process of screen based trading for buying and selling of

securities?


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Answer 1

Answer:

Selection of broker – The first step is to select a broker who will buy/sell securities on behalf of the investor. This is necessary because trading of securities can only be done through SEBI registered brokers who are the members of a stock exchange. Brokers may be individual, partnership firms or corporate books. The broker charges brokerage/commission for his services. 2. Opening demat account – The next step is to open a demat account. Demat (Dematerialised) account refers to an account which an Indian citizen must open with the depository participant (banks, stock brokers) to trade in listed securities in electronic form. The securities are held in the electronic form by a depository. At present, there are two depositories in India NSDL (National Securities Depository Ltd.) and CDSL (Central Depository Services Ltd.). Depository interacts with the investors through depository participants. Your Depository Participant will maintain your securities account balances and intimate to you the status of your holding from time to time. 3. Placing the order – The next step is to place the order with the broker. The order can be communicated to the broker either personally or through telephone, cell phone, e-mail etc. The instructions should specify the securities to be bought or sold and the price range within which the order is to be executed. Only the securities of listed companies can be traded on the stock exchange. Read more on Sarthaks.com - https://www.sarthaks.com/858431/state-first-steps-which-involved-screen-trading-buying-selling-securities-secondary-market?show=858432#a858432

Answer 2

Answer:

• The Stock Broker issues the contract note in the process of screen based trading for buying and selling of securities.

Explanation:

• Once the broker receives the order from the investor, he executes it. Within 24 hours of this, the broker must issue a Contract Note. This document contains all the information about the transactions, like the number of shares transacted, the price, date and time of the transaction, brokerage amount, etc.