Common Contract Note made mandatory by SEBI

In a significant step towards promoting ease of doing business for institutional investors and market participants, Common Contract Note (CCN) with a Single Volume Weighted Average Price (VWAP) has been made mandatory by the markets regulator SEBI. It came into effect from June 27, 2025, SEBI said in a statement on Wednesday.

The erstwhile system required separate trade confirmations for each exchange, resulting in complicated reconciliation, settlement, and regulatory compliance. Based on the representation received from market participants, it was decided by SEBI to provide uniformity in post-trade communication.

"Accordingly, in collaboration with concerned stakeholders, a single consolidated contract note mechanism with uniform VWAP was conceptualised and developed for multi-venue trading," SEBI said today. The reform will simplify the post-trade reporting process by consolidating trades executed across multiple exchanges into a single, harmonised document, eliminating the need to process multiple contract notes.

"The move aims at increasing cost efficiency, reducing compliance burden for market participants and ensuring consistent trade reporting aligned with the CC interoperability framework," the SEBI statement concluded. A contract note is the legal document that presents a summary of all the trades executed during a particular trading day. (ANI)

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