Mumbai, Jan. 14: The Securities and Exchange Board of India (Sebi) today asked brokers to disclose on a real-time basis to bourses details of bulk deals made by them.

The objective of the decision is to impart transparency to bulk deals, to prevent rumours and speculation about them in a way that would cause volatility.

Investigations into the scam of 2001 had blown the lid on the nexus between many promoters and brokers in rigging share prices. It was also echoed in the report of the joint parliamentary committee probing the rip-off.

The market watchdog said the disclosure shall be made when total quantity of shares bought/sold is more than 0.5 per cent of all equity shares of a company.

Brokers will be required to disclose to the stock exchange the name of the scrip, the identity of the client, volume of shares bought/sold and the price for it. These details must be sent immediately after the deal. The exchanges, in turn, will share the information the same day, after market hours, with the public.

The broking entities should provide details on deals in a scrip to stock exchanges where total quantity of shares (bought/sold) is more than 0.5 per cent of the number of equity shares of a company listed on stock exchanges, Sebi said in a notification today.

The JPC had detected the proximity of promoters and brokers in the frequency with which both acted in collusion by using circular trading in shares of certain companies.

“The sole objective of creating an impression that the scrip in which circular trading is effected, is that it was heavily traded. Therefore, they enticed innocent small investors in the market to purchase the scrip of a firm,” the Parliamentary panel had observed in its report.

This was one of the main factors that contributed to artificial inflation of share prices in specific shares. Particularly, shares known as Ketan Parekh’s “K-10” stocks which, in turn, contributed in large measure to a sentiment being created in the market. It enthused small investors among others to invest solely in specific shares and the stock market in general, the report said.