SEBI Introduces Common Contract Note With Single VWAP

PR No.38/2025, Dated: 02.07.2025

To enhance transparency and streamline post-trade operations, the Securities and Exchange Board of India (SEBI) has mandated the implementation of a Common Contract Note (CCN) with a single Volume Weighted Average Price (VWAP) for institutional investors. This regulatory change comes into effect from June 27, 2025.

1. Addressing Challenges of the Previous System

Previously, institutional investors received separate trade confirmations for each exchange on which a transaction occurred. This fragmented approach created multiple challenges, including:

• Complex reconciliation processes
• Increased settlement risks
• Difficulties in regulatory compliance

Such inefficiencies not only burdened institutional investors but also affected the overall ease of doing business in the capital markets.

2. Uniformity Through Single VWAP

In response to representations received from various market participants, SEBI undertook a review of the post-trade communication process. Based on feedback and industry needs, it introduced the concept of a single VWAP across exchanges, to be reflected in a consolidated CCN.

This unified approach brings the following benefits:

• Simplified trade confirmation for transactions executed across multiple exchanges
• Easier back-office reconciliation and reporting
• Improved regulatory clarity and compliance

3. A Step Toward Investor-Centric Market Reforms

The introduction of the Common Contract Note with a single VWAP is part of SEBI’s broader agenda to facilitate ease of doing business, especially for large institutional players. By standardising and streamlining post-trade documentation, SEBI aims to:

• Reduce operational overhead
• Promote market efficiency
• Enhance investor confidence in Indian capital markets

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