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SEBI has revised the framework for block deals, by providing two separate trading windows of 15 minutes each and increasing the minimum order size to Rs 10 crore.
The block deal window is provided for buyers and sellers to execute trades for a large number of shares. Such deals are usually negotiated before their execution.
This step is taken to ensure confidentiality of the large trades and stable prices for such transactions.
Under the new rules, Sebi would provide two block deal windows, morning and afternoon of 15 minutes duration each.
The morning window would operate from 8:45 am to 9:00 am, while the afternoon window, will operate from 2:05 pm to 2:20 pm.
As per Sebi, every trade executed in the block deal windows must result in delivery and will not be squared off or reversed.
