Market regulator Securities and Exchange Board of India ( Sebi) on Wednesday mandated the use of a Common Contract Note (CCN) with a Single Volume Weighted Average Price ( VWAP), effective June 27, 2025. This move aims to simplify post-trade processes and enhance ease of doing business for institutional investors.
Until now, institutional investors and market participants were burdened with separate trade confirmations from each exchange, leading to cumbersome reconciliation, settlement complexities, and increased compliance challenges.
Responding to long-standing demands from industry stakeholders, Sebi, in collaboration with exchanges and clearing corporations, has developed a single, consolidated contract note mechanism with a uniform VWAP.
Under the new system, all trades executed across multiple exchanges will be consolidated into a single, harmonised contract note, significantly simplifying post-trade reporting. This eliminates the need for investors to process and reconcile multiple contract notes, streamlining the settlement workflow.
The reform is expected to boost cost efficiency, reduce manual errors, and ease the compliance burden on brokers, institutional investors, and custodians. Additionally, it aligns with the Common Clearing interoperability framework, ensuring consistent and standardised trade reporting across the capital markets ecosystem.
Market participants have hailed the move as a game-changer for back-office operations, with many expecting it to improve transparency and operational efficiency in India’s capital markets. By reducing paperwork and introducing uniformity, the single VWAP contract note represents a major step towards modernising India’s trading infrastructure in line with global best practices.
In another significant development, Sebi has decided to open a special window for the re-location of transfer deeds that were submitted before the April 1, 2019 deadline but were rejected, returned, or left unattended due to deficiencies in documentation, process, or other reasons. This window will remain open for six months, from July 7, 2025, to January 6, 2026.
This initiative aims to facilitate easier investing for investors and to safeguard their rights in securities they had purchased earlier.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Until now, institutional investors and market participants were burdened with separate trade confirmations from each exchange, leading to cumbersome reconciliation, settlement complexities, and increased compliance challenges.
Responding to long-standing demands from industry stakeholders, Sebi, in collaboration with exchanges and clearing corporations, has developed a single, consolidated contract note mechanism with a uniform VWAP.
Under the new system, all trades executed across multiple exchanges will be consolidated into a single, harmonised contract note, significantly simplifying post-trade reporting. This eliminates the need for investors to process and reconcile multiple contract notes, streamlining the settlement workflow.
The reform is expected to boost cost efficiency, reduce manual errors, and ease the compliance burden on brokers, institutional investors, and custodians. Additionally, it aligns with the Common Clearing interoperability framework, ensuring consistent and standardised trade reporting across the capital markets ecosystem.
Market participants have hailed the move as a game-changer for back-office operations, with many expecting it to improve transparency and operational efficiency in India’s capital markets. By reducing paperwork and introducing uniformity, the single VWAP contract note represents a major step towards modernising India’s trading infrastructure in line with global best practices.
In another significant development, Sebi has decided to open a special window for the re-location of transfer deeds that were submitted before the April 1, 2019 deadline but were rejected, returned, or left unattended due to deficiencies in documentation, process, or other reasons. This window will remain open for six months, from July 7, 2025, to January 6, 2026.
This initiative aims to facilitate easier investing for investors and to safeguard their rights in securities they had purchased earlier.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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