Block deal rules in India: size, timings and disclosure

When a large investor wants to buy or sell a big chunk of shares in one go, they can use a block deal. This page explains what a block deal is, the current rules in India and what investors can learn from block deal data.

Quick answer

A block deal is a single large trade in shares, done through a separate trading window on the stock exchange. Under SEBI's revised framework from October 2025, the minimum order size is Rs 25 crore. Block deals happen in two short windows, at 8:45 am to 9:00 am and 2:05 pm to 2:20 pm, within a price band of plus or minus 3 percent of a reference price, and must result in delivery.

Key takeaways

• It is one large trade in a special exchange window.
• The minimum order size is Rs 25 crore.
• There are two windows: 8:45 to 9:00 am and 2:05 to 2:20 pm.
• Prices must stay within 3 percent of a reference price.
• Exchanges disclose block deal details on the same day.

What is a block deal?

It is a way for large investors, such as mutual funds, foreign investors or promoters, to trade a big quantity of shares in a single transaction. Instead of breaking the order into many small trades in the normal market, the buyer and seller meet in a dedicated window.

This helps avoid sharp price swings that a huge order could cause in the regular market. It also gives both sides more certainty about the price and quantity.

What are the current rules?

SEBI revised the framework through a circular dated 8 October 2025. The minimum order size was raised from Rs 10 crore to Rs 25 crore. Every block deal must lead to actual delivery of shares, so it cannot be squared off or reversed.

Orders in both windows must be within a price band of plus or minus 3 percent of the reference price. For the afternoon window, exchanges share the applicable VWAP between 2:00 pm and 2:05 pm so that orders can be placed.

How are block deals disclosed?

Exchanges publish details of each block deal, including the share name, client name, quantity and price, after market hours on the same day. This lets every investor see which large players are buying or selling.

The data appears on NSE and BSE websites. Market news often reports large block deals, especially when promoters or big funds are involved.

What can investors learn from block deals?

A block deal shows that a large investor has changed its position, but it does not explain why. A promoter may sell to meet minimum public shareholding rules, repay debt or fund another business. A fund may buy as part of a long-term plan or sell to meet redemptions.

So this data is one piece of information, not a signal to copy. It is more useful when read alongside the company's results, shareholding pattern and official announcements.

How is a block deal different from a bulk deal?

A block deal happens in a special window with a minimum size of Rs 25 crore. A bulk deal happens in the normal market and is based on the share of a company traded, more than 0.5 percent of its listed equity shares in a day.

Frequently Asked Questions