Block Deals on Stock Exchange:
SEBI has, by its circular dated September 2, 2005, issued certain guidelines in relation to ‘block deals’. The Block Deal circular has defined a block deal to mean a trade involving a minimum quantity of 500,000 shares or minimum value of Rs 50 million executed through a single transaction on a separate trading window, subject to following conditions:
- Trading windows are to be set up and operated by stock exchanges which shall remain open from 9.55 am to 10.30 am.
- The orders may be placed in this window at a price not exceeding +1% from the ruling market price / previous day closing price.
- Every trade executed in this window must result in delivery and shall not be squared off or reversed.
- Stock exchange shall disseminate the information on block deals to general public.