After the trade has been executed in screen based trading, within 24 hours the broker issues a:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Contract Note
Option (1) Demat Account — Incorrect. The investor opens this account with a depository participant before trading starts, to hold shares in electronic form. It is not issued after a trade.
Option (2) Contract Note — Correct. Within 24 hours of the trade, the broker issues a contract note. It shows the number of shares bought or sold, the price, the date and time of the deal and the brokerage. It is legally enforceable, so it helps settle any dispute between the investor and the broker.
Option (3) Share Certificate — Incorrect. In screen based trading, shares are held in demat form, so no paper certificate is issued.
Option (4) Demat Form — Incorrect. No such document is issued after a trade.
Note: Although the chapter ‘Financial Markets’ was dropped from the NCERT textbooks during rationalisation, it has stayed in the NTA syllabus every year since 2022, except for 2025, and it is part of the syllabus again from 2026. This question is therefore based on the pre-rationalised NCERT, an extract from which is given below. NCERT (Pre-rationalised Edition): “Steps in the Trading and Settlement Procedure … 2. The investor has to open a ‘demat’ account or ‘beneficial owner’ (BO) account with a depository participant (DP) for holding and transferring securities in the demat form. …” “Steps in the Trading and Settlement Procedure … 6. After the trade has been executed, within 24 hours the broker issues a Contract Note. This note contains details of the number of shares bought or sold, the price, the date and time of deal, and the brokerage charges. This is an important document as it is legally enforceable and helps to settle disputes/claims between the investor and the broker. …” |