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Block Deals
Access all the block deals of listed companies in one place.
| Scrip Name | Client Name | Buy (B) / Sell (S) | Shares Quantity | Average Price | Date |
|---|
What is a Block Deal?
A block deal refers to a single transaction in which more than 5 lakh shares or a minimum value of Rs. 10 Crores is traded. The threshold used to be Rs. 5 crores, but SEBI increased it to Rs. 10 Crores in 2017.
Since these trades are uncommon because of their size and capital requirement, SEBI restricts them to trading in ‘Block deal windows’, which operate twice a day, for 15 minutes each. These windows are:
Morning block deal window - 8:45 am to 9:00 am
Afternoon block deal window - 2:05 pm to 2:20 pm
In addition to featuring distinct trading periods, a block deal is conducted based on a specific block reference price. Institutions and other participants involved in a block deal have the option to submit orders with a premium or discount of 1% (+ or -) to this reference price. The reference price varies for each trading period. For the morning trading session, the block reference price corresponds to the closing price from the previous trading day. Conversely, for the afternoon block deal window, the block reference price is determined using the volume-weighted average price of the stock between 1:45 pm and 2:00 pm.
It is important to highlight that any un-executed or unmatched orders for block deals are automatically cancelled and not carried over to the subsequent trading session.
Where can we access the list of most recent Block Deals?
Accessing information regarding recent block deals is essential for investors, and such data is readily available on the exchange websites (you can also check out the Pocketful website for better sorting and filtering options on the block deals).
How are Block Deals different from Bulk Deals?
A significant number of investors believe that there is no difference between block deals and bulk deals. Let's distinguish these two seemingly similar concepts.
Bulk deals refer to transactions involving a minimum of 0.5% of a company's total listed shares. Unlike block deals, which have specific trading windows, bulk deals can be conducted within regular trading hours. Therefore, they are visible to all market participants, including retail investors, and have the ability to manipulate the stock price. Thus, the volume traded in a bulk deal is reflected on price charts on trading platforms and websites. This is why brokers facilitating such transactions between investors or institutions are required to inform the stock exchanges of various transaction details, including participant identities and traded volume.
In certain circumstances, a bulk deal may occur within block deal trading windows if the value of the 0.5% of shares traded exceeds ₹10 crores. In such instances, the trader initiating the deal may opt to place the order during regular trading hours on the stock exchange or within the block deal window. Investors seeking anonymity during trading hours may prefer to place their orders within the block deal window.
Taking action based on Block deals data
Block deals can signal the interest of HNIs in a specific stock. However, it is important to remember that taking action solely on the information of such deals can prove fatal, so these indicators must be carefully analyzed and cross-referenced with other market trends and indicators to make informed trading decisions.
