Block Deal vs Bulk Deal
The amount entangled in bulk / block deals are pretty high, more over the normal retail investors can’t participate in it. Mutual funds like institutional investors, Financial investors, Banks and foreign institutional investors usually participate in it.
Various traders needlessly get motivated seeing some names in block and bulk deals and attempt to trade these stocks. These deals does not mean that the stock rate will develop. Traders should analyze before getting into this trade.
- Between two parties, a transaction of least amount of 500,000 shares or a least value of ₹5 crore. In this, they recognize to sell or buy shares at an accorded prize between themselves.
- The deal trade happens through a discrete trading window and takes place at the inception of trading hours for about 35 minutes. Every trade needs to succeed in delivery.
- As these deals take place in a discrete window, these are invisible to the constant market.
- After the trading hour on the same day, the exchanges should reveal the details on these deals to the public.
- This is a deal in which the entire amount of shares sold or bought is higher than 0.5% of the number of shares of a company.
- This deal takes place in ordinary trading window delivered by the broker.
- These deals are visible to anyone.
- The broker who controls this deals should deliver the information of the transaction to the exchanges whenever they happen.