Disclosure of trade details of bulk deals
Summary
This circular mandates the disclosure of trade details for bulk deals to enhance market transparency and prevent price volatility. It requires brokers to report transactions exceeding 0.5% of a company's equity shares to stock exchanges immediately upon execution. Stock exchanges are directed to disseminate this information to the public on the same day and amend their bye-laws accordingly.
Text
With a view to imparting transparency in bulk deals so as to prevent rumours/speculation about such deals causing volatility in the scrip price, it has been decided to bring about greater disclosure of such deals as mentioned below:-
The disclosure shall be made with respect to all transactions in a scrip where total quantity of shares bought/sold is more than 0.5% of the number of equity shares of the company listed on the stock exchange.
The brokers shall disclose to the stock exchange the name of the scrip, name of the client, quantity of shares bought/sold and the traded price.
The disclosure shall be made by the brokers immediately upon execution of the trade.
The Stock exchanges shall disseminate the aforesaid information on the same day after market hours to the general public.
The Stock Exchanges are directed to
make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision immediately.
bring the provisions of this circular to the notice of the member brokers/clearing members of the Exchange and also to disseminate the same on the website.
communicate to SEBI, the status of the implementation of the provisions of this circular in Section II, item no. 13 of the Monthly Development Report for the month of January 2004.
This circular is being issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
Source: SecMarx — Disclosure of trade details of bulk deals. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.