What are Block and Bulk Deals in Stock Market.
                     What are Block and Bulk Deals 
in Stock Market?
Introduction
• Bulk and block deals done on exchanges are keenly watched by market participants daily as 
they indicate the interest of big investors in a stock. Though these two terms sound similar, 
there is a difference between them. 
Source: https://economictimes.indiatimes.com/ 
What is a bulk deal?
• A bulk deal in the stock market is one in which the total quantities of shared purchased or 
sold exceeds over 0.5 per cent of the equity shares of a company listed on the exchange. 
• A market-driven deal, it occurs only when brokers provide a trading window during the 
regular trading hours.
Source: https://economictimes.indiatimes.com/ 
Rules about bulk deal trading
• Brokers facilitating the trade are obligated to notify the particular exchange about the deal.
• They must inform the exchange within an hour of the trading day’s closing, especially if the 
deals are done via a single transaction.
Source: https://economictimes.indiatimes.com/ 
Rules about bulk deal trading Cont.
• Brokers need to provide specific details about the deal such as the script bought or sold, the 
name of the client, the quantity or volume of shares bought or sold and the trade price.
• Apart from sharing the information, brokers must also it public, after the trading hours close, 
on the same day of implementing the trade.
Source: https://economictimes.indiatimes.com/ 
What is a block deal?
• A block deal is defined as a trade wherein more than 500,000 shares or shares worth a value 
exceeding Rs. 5 Crores, of a particular company listed on the exchange, are traded. Block 
deals may only be conducted during a particular trading window in the early trading hours.
Source: https://economictimes.indiatimes.com/ 
Rules about trading block deals
•  Block deals may be done in the price range of +1 per cent to -1 per cent of either the current 
market price or the closing price of the previous day.
• Brokers entering into block deal trades must notify the exchange providing details such as the 
script name, volume and quantity of stocks bought or sold and the client’s name and the 
trade price.
Source: https://economictimes.indiatimes.com/ 
Rules about trading block deals Cont.
• Such a deal can occur only when both parties agree upon buying or selling shares at a 
predetermined price.
• If the deal must be traded, the rate and quantity of shares must exactly match the opposite 
block order.
Source: https://economictimes.indiatimes.com/ 
Regulatory Requirements
• Following details to the exchanges needs to be disclosed by the broker:
– Details of the Security
– Name of the Client
– Volume/Quantity of shares bought/sold
– Trade price
Source: https://economictimes.indiatimes.com/ 
Who are the Participants in Bulk and Block Deals?
• It is the Institutional investors like the foreign institutional investors, super HNIs (high net 
worth individuals), mutual fund houses, insurance companies, banks, venture capitalists and 
other financial institutions are the major participants in these types of deals.
Source: www.elearnmarkets.com
Impact of Bulk and Block Deals
• This transaction led to increase in concentration of interest in such stock, resulting in price 
appreciation in the near future. The reverse holds true in case of constant selling.
Source: www.elearnmarkets.com