The Securities and Exchange Board of India (SEBI) has mandated the use of a Common Contract Note (CCN) with a Single Volume Weighted Average Price (VWAP), effective from 27 June 2025. The move is aimed at simplifying post-trade processes and easing the operational load on institutional investors and market participants.

The new system replaces the earlier practice where participants received separate trade confirmations for each exchange. This often led to complex reconciliation processes, settlement delays, and increased regulatory compliance efforts.

Following representations from market participants, the decision was taken to introduce a uniform post-trade communication process. Developed in collaboration with key stakeholders, the CCN mechanism consolidates trades executed across multiple exchanges into a single, standardized document using a common VWAP.

This change is expected to streamline post-trade reporting, enhance cost efficiency, and reduce the compliance burden for investors. It also ensures consistency in trade reporting in line with the clearing corporation interoperability framework.

By consolidating contract notes into one harmonized format, the initiative marks a key reform in post-trade infrastructure, particularly benefiting those engaged in multi-venue trading.

In a parallel initiative, SEBI has also announced the opening of a special six-month window from 7 July 2025, to 6 January 2026, for the re-location of transfer deeds submitted before 1 April 2019. These deeds, which were previously rejected or left unresolved due to documentation or process gaps, can now be rectified and processed. The move is intended to safeguard investor rights and simplify access to previously purchased securities.

Powered by Capital Market - Live News