SEBI Increases Minimum Block Deal Size to ₹25 Crore and Widens Price Band

The Securities and Exchange Board of India (SEBI) has announced significant changes to block deal trading, raising the minimum deal size to ₹25 crore from ₹10 crore. The regulator has also expanded the price band for execution, allowing orders to fluctuate within ±3% of the reference price. This MOVE aims to enhance price discovery and market efficiency.

Block deals will now be conducted in two dedicated windows: a morning session from 8:45 AM to 9:00 AM and an afternoon session from 2:05 PM to 2:20 PM. The reference price for morning deals will be the previous day's closing price, while the afternoon session will use the volume-weighted average price (VWAP) from 1:45 PM to 2:00 PM.

All block trades must result in delivery and cannot be squared off or reversed, reinforcing SEBI's focus on reducing speculative activity. The new framework, which follows a 2024 consultation paper, takes effect 60 days after the circular's issuance.