Mumbai, Nov 20: In an effort to bring transparency in stock market activity, Securities and Exchange Board of India (Sebi) has made it mandatory for stock brokers to disclose to their clients whether they conduct client-based business or do proprietary trading. The brokers should disclose this information to existing clients within one month from today, Sebi said in a communication to the stock exchange here.
BR> Further, the broking entities would have to disclose this information upfront to his new clients while entering into the "know your client" agreement, Sebi said.
In case a broker, who does not trade on proprietary account chooses to do so at a later date, would be required to disclose this aspect to clients before carrying out proprietary trading, it said.

The stock exchanges should make amendments to the relevant rules and regulations to implement this decision, Sebi added.

Bureau Report