SEBI Revamps Block Deal Framework; Raises Minimum Trade Size To ₹25 Crore

The Securities and Exchange Board of India (SEBI) has reportedly overhauled its block deal framework by setting a new minimum trade size of ₹25 crore per transaction, up from the previous threshold of ₹10 crore.

Under the revised norms, stock exchanges will offer two block-deal windows each trading day, a morning window from 8:45 am to 9:00 am, using the previous day’s closing price as reference, and an afternoon window from 2:05 pm to 2:20 pm, anchored to the volume-weighted average price (VWAP) of trades between 1:45 pm and 2:00 pm, a report by PTI read.

According to the new framework, trades must fall within ±3% of the applicable reference price in each window, and exchanges are required to disclose full transaction details, including scrip name, client identity, quantities traded, and price, at the end of the trading day.

Furthermore, all block transactions must result in actual delivery, with no scope for squaring off or reversal. The revised norms will also cover block deals executed under the optional T+0 settlement cycle.

SEBI has mandated that all exchanges, clearing corporations, depositories, and market participants implement necessary changes to bylaws and systems before the rules take effect, scheduled 60 days from the issuance of the circular.

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