SEBI tweaks block deal norms; least order size is now ₹10 cr.

Decision taken after suggestions from market participants to review framework Markets regulator SEBI on Thursday revised the framework for ‘block deals’ by providing two separate trading windows of 15 minutes each and increasing the minimum order size to ₹100000000. Ensuring confidentiality The move is aimed at ensuring confidentiality of the large trades and stable prices for such transactions. 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. Under the new rules, SEBI would provide two block deal windows — morning and afternoon — of 15 minutes duration each. Besides, the regulator has increased the minimum order size for execution of trades in the block deal window to ₹100000000. Presently, block deal for shares worth ₹50000000 through a single transaction is allowed. The decision has been taken as SEBI received suggestions from market participants to review the block deal framework. The final norms have been put in place after taking into consideration views of market participants and Secondary Market Advisory Committee (SMAC). The morning window would operate from 845 a.m. to 9 a.m. and the reference price for execution of block deals in this window would be the previous day’s closing price of the stock. With regard to afternoon window, the regulator said it would operate from 205 pm to 220 pm. The pricing would be based on the volume weighted average market price (VWAP) of the trades executed in the stock in the cash segment between 145 p.m. to 2 p.m.