NISM Hyderabad : Books Maintained by Broker : AS Chakravarthy

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Books of Accounts maintained by Trading Member/Broker:

The following books that shall be maintained by a broker include, register of transactions (sauda book), clients ledger, general ledger, journal, cash book, bank book, securities register, KYC, agreements with clients and tripartite agreements with client and sub-brokers. Some of these books/transaction records, counterfoils or duplicates of contract notes, margin deposit book, register of accounts of sub-brokers are briefly discussed below.

Register of transactions (sauda book): This is to include each transaction effected. This would show the name of the security, its value, rates gross and net of broker-age and names of the clients.

Client’s ledger, has the details of all clients, and their transactions through the broker.

General ledger accounts for all general transactions including expenses, over-heads salaries, petty cash, etc., by broker.

Journal is the accounting book of the general ledger. Any adjustment entries for e.g., interest receivable, etc., is accounted here.

Cash and bank book: This book records of all transactions of cash and cheques and are normally balanced daily.

Securities register: This book is required to be maintained client-wise and scrip-wise. The details provided would include date of receipt/delivery of the security, quantity received/delivered, party from whom delivered/to whom delivered, the purpose of receipt/delivery and the balance quantity.

A Contract note is nothing but trade confirmation slip a specific day for and on be-half of a Client. A contract note issued within the format and manner prescribed by the exchanges establishes a lawfully enforceable relationship between the stock broker and therefore the client. The copies of the initial contract notes issued to the client are to be maintained by the broker.

Margin deposit book: This book contains details of margins paid and collected and payable and collectable.

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