SEBI revises block deal framework, sets ₹25 crore minimum trade size

The Securities and Exchange Board of India (SEBI) has decided to revamp the block deal framework, introducing tighter norms on trade execution, disclosure, and settlement to enhance transparency and market integrity.

Under the revised guidelines, the minimum order size for block deal trades will be ₹25 crore, up from the current ₹10 crore. Every trade executed in the block deal window must result in compulsory delivery and cannot be squared off or reversed, the regulator said.

Stock exchanges will now be required to disclose details of all block deals—including the name of the scrip, client identity, quantity, and traded price—to the public on the same day after market hours. The provisions will also apply to block deals executed under the optional T+0 settlement cycle.

Further, block deal orders may be placed within a 3% price band—either above or below the prevailing market price.

SEBI has directed stock exchanges, clearing corporations, and depositories to ensure that all applicable trading, settlement, surveillance, and risk-containment measures mirror those of the normal trading segment.

The revised framework will come into effect 60 days from the issuance of the circular.



Other conditions for block deals:

Morning block deal window: Trades can be executed between 8:45 am and 9:00 am, with the previous day’s closing price serving as the reference for block deal execution.

Afternoon block deal window: Trades will be allowed between 2:05 pm and 2:20 pm, with the volume-weighted average price (VWAP) of the stock in the cash segment from 1:45 pm to 2:00 pm as the reference.

Stock exchanges will calculate and disseminate the applicable VWAP between 2:00 pm and 2:05 pm, ahead of the afternoon block deal window, the SEBI circular added.