The committee has suggested that henceforth these transactions should be reported to the stock exchanges within 15 minutes of trade being negotiated.

The stock exchanges would prescribe penalties for violations of reporting requirement and any transaction after trading hours should be reported the next trading day at the start of the market hours explained a senior SEBI official.

Interestingly, this facility could be availed by the kerb market operators to report their deals on the exchange at the onset of the next trading session. The committee has also insisted that the exchanges must make arrangements for the dissemination of information relating to execution and cancellation of negotiated deals on their screensimmediately.

In order to bring in uniformity in the reporting mechanism the committee has also decided that these transactions should be reported to the stock exchanges within 15 minutes of trade being negotiated.

"Many times deals are reported to the exchange however the investors have no idea about the execution of such price sensitive deals hence more transparency is required in the system," the official further explained. Further, it was also decided that all such negotiated deals may be settled either through the clearing house of the stock exchange and clearing corporation or bilaterally as prescribed by the concerned exchange. The committee has once again made it clear that all such deals will not be covered by the settlement trade guarantee funds of the exchanges or the clearing corporations. Cross deals executed between two clients of the same broker will also have to abide by the definitions prescribed for negotiated deals in terms of size, volume and the set of disclosures.

Considering theother important facets of reporting negotiated deals the committee has decided to frame the working guidelines for all such deals, which would include important features like that of price discovery and exposure based on the international standards. These issues will be discussed at the next meeting of the committee.

A negotiated deal has been defined as any transaction executed at a price not formed through the stock exchange price and order matching mechanism. An interesting feature of the committee's deliberations was reporting of deals conducted after the trading hours of the exchange.