In order to facilitate execution of large trades, a separate trading window is provided.
This is in continuation to SEBI circular CIR/MRD/DP/118/2017 dated October 26, 2017 and Exchange circular nos. 20171030-5
dated October 30, 2017 and 20171229-4
dated December 29, 2017 regarding review of block deal window mechanism in the Equity segment.
Trading members of the Exchange are hereby informed that the revised mechanism shall be applicable with effect from Monday, January 01, 2018.
Guidelines of the revised block deal mechanism are as follows –
- Timings – Block deal windows shall be available on all trading days in Equity segment as follows –
a. Morning Block Deal Window - This window shall operate between 08:45 AM to 09:00 AM.
b. Afternoon Block Deal Window - This window shall operate between 02:05 PM to 2:20 PM.
- Block Reference Price (BRP):
The reference price for execution of block deals will be provided in the market picture of the security as 'BRP'. The orders placed shall be within ±1% of the applicable reference price in the respective windows.
a. BRP for execution of block deals in the morning block deal window shall be the previous day closing price or adjusted previous close price (on account of corporate action) of the security. If security is not traded on the previous day then the latest available close price shall be considered.
b. BRP for afternoon block deal window shall be the volume weighted average market price (VWAP) of the trades executed in the stock in the Equity segment between 01:45 PM to 02:00 PM. If no trades are executed between 01:45 PM to 02:00 PM, then the reference price considered shall be previous close price of that security.
- The minimum order size for execution of trades in the block deal window shall be Rs.10 Crore. There shall be no minimum quantity check applicable.
The Exchanges shall disseminate the information of BLOCK Deal such as the name of the Security, name of the client, quantity of shares brought/sold, traded price, etc to the general public on the same day, after the market hours.
Please refer to latest Exchange notice no. 20181012-6
dated October 12, 2017 for Modalities for Bulk and Block deal reporting.
FAQs on Block Deal