SEBI proposes raising minimum order size for block deals

Block deals are large transactions executed through a single trade to avoid market disruption. The draft circular has sought public comments until September 15

The Securities and Exchange Board of India (SEBI) has proposed a review of the block deal framework, including widening the reference price range for non-F&O stocks and increasing the minimum order size.

Under the draft proposals, for stocks under the futures and options (F&O) segment, block deal orders must be within ±1 per cent of the reference price, while for non-F&O stocks the limit will be ±3 per cent. Currently, all orders are placed within ±1 per cent of the applicable reference price.

The minimum order size has also been suggested to be revised to ₹25 crore from the current ₹10 crore to keep up with the market growth. SEBI has clarified that such trades must result in compulsory delivery and cannot be squared off or reversed.

The morning block deal window will operate between 8.45 am and 9.00 a.m, with trades executed at the previous day’s closing price. A second afternoon window will run between 2.05 pm and 2.20 pm, based on the volume weighted average price (VWAP) of trades executed between 1.30 pm and 2.00 pm.

Block deals are large transactions executed through a single trade to avoid market disruption. The draft circular has sought public comments until September 15.

Exchanges, clearing corporations and depositories will also apply regular risk management and surveillance norms to these trades. The revised framework will take effect 30 days after the final circular is issued.

Published on August 22, 2025