Revised Block Deal Framework Analyzed

The Securities and Exchange Board of India (SEBI) is changing the way large stock trades happen. This new rule is designed to make these trades fairer and easier to track. It’s like setting up a system for big deals to happen without causing problems for smaller investors.

Key Points

• SEBI alters block deal rules for greater market transparency.
• Price range increased to 3%, minimum order size now ₹25 crore.
• Smaller trades will occur in the standard market environment.
• Dedicated trading windows exist for morning (8:45-9:00 AM) and afternoon (2:05-2:20 PM).
• Morning uses prior day’s close, afternoon uses VWAP data.
• New rules take effect December 7, 2025, including T+0 settlement.

How the New Rules Work

Before, when very big trades were planned, they had to happen during specific times. The rules said the trade had to be between 1% and 3% of the stock’s price. The minimum amount you could trade was at least ₹10 crore. Now, these limits have increased to 3% of the price and ₹25 crore.

There are two times when these big trades can happen. One is in the morning, from 8:45 AM to 9:00 AM. During this time, the price used to calculate the trade is based on the stock’s price from the day before. The second time is in the afternoon, from 2:05 PM to 2:20 PM.

During the afternoon session, the stock exchanges calculate a price based on the trades that happened earlier in the day – specifically, between 1:45 PM and 2:00 PM. They then share this “VWAP” (Volume-Weighted Average Price) with traders before the 2:05 PM session starts.

This new framework will become official on December 7, 2025. Importantly, these rules apply even when trades use the faster “T+0” settlement cycle, where the money changes hands immediately.

“These changes are aimed at fostering a more efficient and transparent market for all investors.”