Making the reporting system more stringent, Sebi said all negotiated deals informed to the exchanges and displayed on the screen must include name of the security, price, quantity, value and name of the brokers involved.

The guidelines require that if the deals are negotiated after the trading hours of the bourses, it should be informed immediately on the next trading day at the start of trading, according to Sebi sources.

The capital market regulator has also vested powers to the stock exchanges in case of a violation, saying the bourses can prescribe penalties for the violation of the reporting requirements laid down by Sebi.

Exchanges must arrange for dissemination of information relating to the execution as well as cancellation of the negotiated deals on their screensimmediately.

The guidelines, issued last week, are aimed at making corporate deals more transparent and to ensure that no insider trading takes place, the sources added. Defining negotiated deals, Sebi said any transaction having either a value of Rs 25 lakh and more or a volume of not less than 10,000 shares will come under the term negotiated deal.

On settlement of the deals, Sebi said that all negotiated deals must result in delivery of shares.

In case of cancellation of such deals, the regulator said it can take place (cancellation) only in special cases with the prior approval of stock exchanges.

The transactions may be settled either through the clearing house of the stock exchange, clearing corporations or bilaterally as prescribed by the concerned exchange, it said.

If the transactions are settled bilaterally, then the exchange shall devise a mechanism to obtain and monitor the actual settlement details.

Sebi, however, excluded negotiated deals from settlement trade guarantee funds of thestock exchanges and clearing corporations.

Further, the guidelines said any dispute arising out of these deals would be resolved through the arbitration mechanism of the bourse.

Cross deals between two clients of the same broker will also be considered as negotiated deals if the size of the transactions are as big as defined by Sebi.