Block Deal Framework Revamped, SEBI Introduces Rs25 Crore Minimum Trade Size and Tighter Trading Rules
Moneylife Digital Team 09 October 2025
Market regulator Securities and Exchange Board of India (SEBI) has introduced a major overhaul of the block deal framework for stock exchanges, setting a minimum trade size of Rs25 crore and establishing two dedicated trading windows with tighter price bands and enhanced disclosure requirements. The regulator said the move is aimed at improving transparency and efficiency in the execution of large trades.
 
Under the new framework, stock exchanges can operate block deal windows between 8:45am and 5pm, with two separate session’s morning and afternoon, designated for large trades.
 
The morning session will run from 8:45am to 9am, with the reference price linked to the previous day’s closing price. The afternoon session will operate between 2:05pm and 2:20pm, with the reference price calculated using the volume-weighted average price (VWAP) of trades executed between 1:45pm and 2pm. Exchanges will disseminate the VWAP between 2pm and 2:05pm to facilitate trade execution.
 
SEBI has mandated that orders in both sessions must fall within a price band of plus or minus 3% of the applicable reference price. The regulator has also raised the minimum order size for block deals from Rs10 crore to Rs25 crore. All block deals must result in delivery, and squaring off or reversing trades is not permitted.
 
Exchanges have been instructed to publicly disclose details of block deals, including the scrip name, client name, traded quantity, and price, after market hours on the same day. The new norms will also apply to block deals executed under the optional T+0 settlement cycle.
 
The changes follow recommendations from a working group and deliberations by the secondary market advisory committee (SMAC), along with feedback from public consultations. SEBI has asked market infrastructure institutions, stock exchanges, clearing corporations and depositories to implement system changes, amend byelaws and inform market participants ahead of the rollout.
 
The provisions of the revised circular will come into effect 60 days from the date of issuance.
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