NATIONAL STOCK EXCHANGE OF INDIA LIMITED

CAPITAL MARKET OPERATIONS

CIRCULAR

Circular No.: NSE/CMO/0092/2004

Download No. NSE/CMTR/4808

Date: February 16, 2004

Dear Members,

Sub: Disclosure of trade details of bulk deals

SEBI vide its circular No. SEBI/MRD/SE/Cir-7/2004 dated January 14, 2004 (Annexure - 1) has decided that members of the Exchange shall make disclosures to the Exchange 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 Exchange.

The relevant content of the SEBI circular as below:

QUOTE:

Sub: Disclosure of trade details of bulk deals

  1. 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:

1.1. 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.

1.2. 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.

1.3. The disclosure shall be made by the brokers immediately upon execution of the trade.

1.4. The Stock exchanges shall disseminate the aforesaid information on the same day after market hours to the general public.

UNQUOTE:

Accordingly and after seeking necessary clarifications from SEBI, members are advised to send the under mentioned information:

  1. Single Trade: Immediately upon the execution of the order where the traded quantity either buy or sell on account of any trade (client / proprietor) is more than 0.5% of the number of equity shares of the company listed on the stock exchange.

  2. Cumulative Trades for the Day: Within one hour from the closure of the trading hours, the quantity traded on that day either purchase or sale under proprietary or any single client code is more than 0.5% of the number of equity shares of the company listed on the stock exchange.

    3.  

  3. The information is to be sent in the format given below on Fax No. 022-26598155, as under :

 

S No.

Date of Trade

Symbol

Scrip Name

Client Name

Buy (B) / Sell (S)

Quantity Traded

Trade Price / Weighted average trade price
               

The Exchange will arrange to disseminate the aforesaid information after compilation on the same day to the general public through its website - www.nseindia.com.

To facilitate the members to ascertain the number of equity shares of the company members may please use the file (file name: bulkddmmyyyy.xls) available on the extranet under common / Cmmkt directory. The format of the file is as follows:

Symbol

Series

Number of equity shares of the company.

 

This circular is effective from February 17, 2004.

For any clarifications, Trading Members are advised to contact the following officers:

Mr. Janardhan Gujaran / Mr. Jignesh Mehta at 26598153 and 26598156.

For and on behalf of

National Stock Exchange of India Ltd.

 

Suprabhat Lala

Manager (Capital Market - Operations & Surveillance)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annexure - 1

DEPUTY GENERAL MANAGER

Market Regulation Department

E-mail: sundaresanvs@sebi.gov.in

SEBI/MRD/SE/Cir-7 /2004

January 14, 2004

The Executive Directors / Managing Director/Administrators

of All Stock Exchanges

Dear Sir / Madam,

Sub: Disclosure of trade details of bulk deals

1. 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:-

1.1. 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.

1.2. 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.

1.3. The disclosure shall be made by the brokers immediately upon execution of the

trade.

1.4. The Stock exchanges shall disseminate the aforesaid information on the same

day after market hours to the general public.

2. The Stock Exchanges are directed to

2.1. make necessary amendments to the relevant bye-laws, rules and regulations for

the implementation of the above decision immediately.

2.2. 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.

2.3. 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.

3. 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.

Yours faithfully,

V S SUNDARESAN