Due to challenges in implementation, the deadline for the common contract note system has once again been extended to July 2025. It was planned to be implemented in May 2024 and from August 2024. But it was later extended to January 2025 and then to March 2025.
Market participants and foreign portfolio investors have cited operational constraints, including upgrading systems and the pressure of recent regulatory changes, as key reasons for the delay, one of the sources said. The regulator is focusing on ensuring that the entire ecosystem is ready, even though the demand for common contract notes is mainly from a single segment of the market, the source said.
The contract note contains details of the transaction, such as the number of shares, price, brokerage and taxes. Currently, different denominations of notes are issued for each exchange due to which foreign portfolio investors prefer a single exchange. The new arrangement aims to streamline this by introducing a single weighted average price (WAP) for deals on both the exchanges.
First Published – May 1, 2025 | 10:30 PM IST
