CCN for FPIs Postponed by SEBI to 1 July 2025
Why in the news
Foreign investors got two extra months before a single combined contract note becomes compulsory, as market participants reported operational difficulties.
Key facts
- SEBI set 1 July 2025 as the new start for the Common Contract Note (CCN) for FPIs.
- Planned first for August 2024, then 30 April, now July.
- Retail investors already receive unified notes; CCN brings FPIs level.
- FPIs own about 17% of listed equities (Dec 2024); registered FPIs exceed 11,000.
| Aspect | Now | With CCN |
|---|---|---|
| Notes | One each for NSE and BSE | One consolidated note |
| Matching | Per exchange | Across exchanges |
| Penalty risk | On misclassification such as hand delivery | May rise with small mismatches |
Aims
- Unification of BSE and NSE data; better transparency and auditability; lower costs.
Reasons for the delay
- Custodians and FPI representatives feared mismatches would turn trades into hand delivery, which is penalised.
- Incompatible systems and parallel broker and custodian flows hinder real-time matching.
- Many intermediaries in FPI settlement raise clearing risk.
Exam angle
- Regulator: SEBI; new date: 1 July 2025; exchanges: BSE and NSE.
- Settlement chain: FPI, global custodian, local custodian, clearing corporation.