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SEBI Common Contract Note: One VWAP Across Exchanges

3 July 20251 min read
BANKING & FINANCESEBI CommonContract Note:One VWAP AcrossExchanges3 July 2025safalsetu.com

Why in the news

From June 27, 2025, investors get a single consolidated contract note with one VWAP per security.

Key facts

  • Ends the earlier habit of multiple notes for multi-exchange trades.
  • VWAP: average traded price weighted by volume, an intraday indicator that resets each session.
  • Useful for algorithmic or high-frequency trades split across venues.

Benefits

  • Simpler reporting for brokers and back offices.
  • Clearer pricing and charges for investors.
  • Less paperwork for intermediaries.

Exam angle

  • Regulator: SEBI.
  • Full form: volume weighted average price.

Test yourself

1. From which date did SEBI's common contract note with single VWAP come into effect?

The directive came into effect on June 27, 2025.

2. What does the single VWAP in the SEBI contract note represent per security?

One VWAP per security is computed across exchanges.

3. Which regulator introduced the common contract note?

SEBI mandated the common contract note.

This topic is part of Daily Current Affairs 3 July 2025 (17 topics).

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