bulk & block deal
This query is : Resolved
Prateek Biyani
(Querist)
20 January 2010
What do you mean by Bulk & Block deal in share market. Specify the limits and differentiate them.
21 January 2010
Bulk deal Vs. Block deal
Exchange provides a separate window for block deals. Bulk deals happen from normal trading windows that brokers provide.
There is only 35 minutes time window for block deals. Bulk deals can happen at any time during the trading hours.
Usually there will be one or none block deals in a day. There will be many bulk deals in a day.
A block deal should be a delivery trade i.e. the delivery of securities happens at T+2 days where as bulk deals are usually ‘day trades’ i.e. buy and sell on same day.
Block deals are associated with a minimum quantity of five lakh shares or a minimum value of Rs 5 crore. A transaction is a bulk deal if the total traded quantity exceeds 0.5% of the number of equity shares of a company.
What if the number of shares traded satisfies the quantitative definition of both bulk and block deals? For e.g. A transaction of 5, 75,000 shares (more than 0.5% of total shares) of a company whose total number of shares are 11, 00, 00,000. In this case if the transactions are traded by a separate trade window and are done on delivery basis they go into the list of block deals. If the transaction is a day trade it goes to the list of bulk deals. Usually we see transactions involving above 5, 00,000 shares under bulk deals section as day trades.
The orders in a block deal are not shown to the people who trade from normal trade window. Bulk orders are visible to every one.
Usually, in a block deal, the trade happens between two agreed parties. It happens when one party would like to buy or sell to other party at an agreed price between them. Bulk deals are market driven.
regards,
CA Jatin Bansal
Exchange provides a separate window for block deals. Bulk deals happen from normal trading windows that brokers provide.
There is only 35 minutes time window for block deals. Bulk deals can happen at any time during the trading hours.
Usually there will be one or none block deals in a day. There will be many bulk deals in a day.
A block deal should be a delivery trade i.e. the delivery of securities happens at T+2 days where as bulk deals are usually ‘day trades’ i.e. buy and sell on same day.
Block deals are associated with a minimum quantity of five lakh shares or a minimum value of Rs 5 crore. A transaction is a bulk deal if the total traded quantity exceeds 0.5% of the number of equity shares of a company.
What if the number of shares traded satisfies the quantitative definition of both bulk and block deals? For e.g. A transaction of 5, 75,000 shares (more than 0.5% of total shares) of a company whose total number of shares are 11, 00, 00,000. In this case if the transactions are traded by a separate trade window and are done on delivery basis they go into the list of block deals. If the transaction is a day trade it goes to the list of bulk deals. Usually we see transactions involving above 5, 00,000 shares under bulk deals section as day trades.
The orders in a block deal are not shown to the people who trade from normal trade window. Bulk orders are visible to every one.
Usually, in a block deal, the trade happens between two agreed parties. It happens when one party would like to buy or sell to other party at an agreed price between them. Bulk deals are market driven.
regards,
CA Jatin Bansal
Prateek Biyani
(Querist)
22 January 2010
Thanks sir, nice reply. I am full oblized.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Accounting treatment of AMC alongwith the purchase of Laptop
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Issuing of delivery challan by seller of goods
- Taxation of crypto futures in India Fy 2026- 2027
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- EPF ECR NEW RULES Sep 17th 2026
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
