New Delhi, Aug 23: The Securities and Exchange Board of India (Sebi) has proposed raising the minimum order size for block deal transactions from Rs 10 crore to Rs 25 crore.
This move, outlined in a recent consultation paper, aims to reflect evolving market conditions since the current threshold was established in 2017.
Block deals, which are large share transactions between two parties, are executed in special 15-minute windows provided by stock exchanges twice daily. Sebi has also proposed that all such trades must result in delivery and cannot be squared off or reversed, to ensure market integrity.
In addition to increasing the threshold, Sebi is considering changes to the pricing mechanism. It proposes widening the price band for non-derivative stocks to 3%, while maintaining the 1% band for F&O scrips, aiming to curb market manipulation.
The morning block deal session (8:45–9:00 am) would continue using the previous day’s closing price, while the afternoon session (2:05–2:20 pm) would reference the volume-weighted average price (VWAP) between 1:30 and 2:00 pm.
To improve transparency, Sebi plans to require exchanges to disclose details like scrip name, client name, quantity, and traded price after market hours. Public feedback on the proposals is invited until September 15. (PTI)
