Sebi: Sebi revamps block deal framework to enhance transparency and efficiency in large trades – News Air Insight

Mumbai: The Securities and Exchange Board of India (Sebi) has revamped the block deal framework for both T+1 and optional T+0 settlement cycles. It has introduced defined trading windows, tighter price bands, and enhanced disclosure norms to improve transparency and efficiency in the execution of large trades.

“Block deal is execution of large trades through a single transaction without putting either the buyer or seller in a disadvantageous position,” said Sebi’s circular.

Under the new framework, block deals can be executed in two separate windows-a morning session between 8:45 AM and 9:00 AM, and an afternoon session between 2:05 PM. and 2:20 PM. The regulator said orders must be placed within a 3% of the reference price, with a minimum order size of ₹25 crore. All trades must result in mandatory delivery, with no squaring off or reversal allowed.

Stock exchanges are required to publish details of all block deals, including stock name, client identity, trade quantity and price, after trading hours on the same day.

The new framework will come into effect from December 8.