Doubt concerning Contract Notes

#1
Hi there

I have a query on Contract Notes.

I receive one as per the T+2 settlement system. Say I buy shares today, I get a Contract note confirming Delivery the day after the next.

Now, a couple of terms in there: Trade Date, & Settlement Date

I understand the Trade Date to be the day on which the trade was done by me with the broker and then executed on my behalf by my broker with the exchange.

However, what does the Settlement date imply?

Does it refer to the exact date when the Delivery was given to me (or my Demat account for that matter) by the exchange (BSE/ NSE)?

I have an outstanding issue with my broker and it is directly related to my query herein. Knowledgeable members are kindly requested to direct their helpful inputs ASAP.

 
#3
payin and payout date is settlement date.


regards
suba
I am sorry but I don't follow .... atleast not yet :)

Supposing I see the Settlement Date stated as 22/01/2007 for 50 Shares of Ispat traded that day or a day back, does it mean that my Demat account was given delivery of those shares on the 22nd?

Payin/ Payout are unfamiliar terms for me ..... pls continue the gud wrk :cool:
 
#4
settlement/payment cycle when customer buys shares:

day Transactionday partyinvolved activity

day1 T( say monday) customer order for buying shares is executed

day2 T+1 (Tuesday) cutomer funds to be paid by customer to broker say
(religare,kotak,icici direct etc)

day3 T+2 (wednesday ) broker broker transfers funds to stock exchange
day3 T+2(wednes day) stock exchange stock exchange transfer shares to broker

day4 T+3 (Thursday) broker shares purchased on day1 are reflected in demat of customer and made available for delivary trade.

similarly...selling of shares will follow the same cycle...day4 you will see funds in your account after selling shares.
 
#5
settlement/payment cycle when customer buys shares:

day Transactionday partyinvolved activity

day1 T( say monday) customer order for buying shares is executed

day2 T+1 (Tuesday) cutomer funds to be paid by customer to broker say
(religare,kotak,icici direct etc)

day3 T+2 (wednesday ) broker broker transfers funds to stock exchange
day3 T+2(wednes day) stock exchange stock exchange transfer shares to broker

day4 T+3 (Thursday) broker shared purchased on day1 are reflected in demat of customer and made available for delivary trade.

similarly...selling of shares will follow the same cycle...day4 you will see funds in your account after selling shares.
Thanks for takin a lotta pain in describin the Settlement Cycle .... I had tht part covered ... but a little bit of clarification/ confirmation of my understanding is always called for and in order :)

Having understood all of this, what does the Settlement Date specify? THis is because I made a Purchase of Power grid on 22nd. I sold it off today and was informed after close that it went as a Short sale since the shares has not been delivered for the purchase made on the 22nd from exchange.

However, I also observe that I received the Contract Notes via Courier around 1:30-2:00PM afternoon today (around the same time that I sold off the shares), which means I had the delivery before disposing off the shares, right?
 

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