The Securities and Exchange Board of India (SEBI) has announced significant changes to stock market regulations, tightening rules around block deals. SEBI has increased the minimum order size for block deals from
Rs 10 crore to Rs 25 crore, with the new rule set to take effect on December 7, 2025. This announcement was made via a circular issued on Wednesday.
For stock market participants, understanding this new rule is crucial. According to a CNBC report, SEBI has adjusted the floor price limit for block deals, allowing it to be up to 3 percent above or below the previous day’s closing price, compared to the previous 1 percent limit. This change provides a greater price leeway for block deals.
The timing of block deals has also been structured into two windows. The first window is from 8:45 am to 9:00 am, with the floor price set at the previous day’s closing price. The second window, from 2:05 pm to 2:20 pm, uses the volume-weighted average price (VWAP) of trading in the cash segment from 1:45 pm to 2:00 pm. Stock exchanges will share VWAP information between 2:00 pm and 2:05 pm.
What Is The Minimum Value For A Block Deal?
Under the new rule, the order price in a block deal must be within 3 percent of the floor price, and each order must be valued at a minimum of Rs 25 crore. These orders are for delivery and cannot be cancelled or changed.
Additionally, stock exchanges will be required to disclose full details of block deals, including the stock name, client name, number of shares bought or sold, and trade price, on the same day after market close.
SEBI Circular
SEBI has also confirmed that these regulations will apply to the optional T+0 settlement cycle. Stock exchanges, clearing corporations, and depositories are directed to implement trading, settlement, surveillance, and risk control measures similar to those in normal trading.
They must establish necessary systems to support these measures. SEBI has mandated that the circular be made available to all investors and market participants and posted on stock exchange websites. These new regulations will come into effect 60 days from the date of the circular’s issuance, on December 7, 2025.
