Difference between Block and Bulk deals

Difference between Block and Bulk deals

*BLOCK DEAL*

# It is a transaction of a minimum quantity of 500,000 shares or a minimum value of Rs 5 crore between two parties, wherein they agree to buy or sell shares at an agreed price among themselves.

# The deal takes place through a separate trading window and they happen at the beginning of trading hours for duration of 35 minutes i.e. from 9.15 am to 9.50 am. Every trade has to result in delivery .

# Rules set by the SEBI state that the price of a share at the window should range within +1% to -1% of the current market price or the previous day's closing price.

*BULK DEAL*

#A bulk deal is a trade where total quantity of shares bought or sold is more than 0.5% of the number of shares of a listed company.

# Bulk deals happen during normal trading window provided by the broker.

# The broker who manages the bulk deal trade has to provide the details of the transaction to the stock exchanges whenever they happen. Unlike block deals, bulk deal orders are visible to everyone.

Dayanand Nene - Political Activist and Analyst