Write short notes on the following: Block Deal

Block Deal: A block deal refers to a single transaction of a large quantity of shares that is executed through a separate trading window provided by stock exchanges. This mechanism was introduced by SEBI to facilitate the execution of large trades without significantly impacting the regular market price of the shares. SEBI introduced a new block window mechanism for block trades from January 01, 2018. Key Features: Minimum Quantity/Value: A trade is classified as a block deal if it involves a minimum quantity of 5,00,000 shares or a minimum value of ₹ 5 crore (or ₹ 10 crore as per some updated regulations, the provided answer states ₹ 10 crore for minimum order size). Separate Trading Window: Block deals are executed in a dedicated "block deal window" on the stock exchange, separate from the normal trading hours. Session Timings: Morning Block Deal Window: Operates between 08:45 AM to 09:00 AM. Afternoon Block Deal Window: Operates between 02:05 PM to 02:20 PM. Price Range: The orders placed in the block deal window must be within ±1% of the applicable reference price (usually the previous day's closing price or the last traded price in the regular market). Transparency: Stock exchanges disseminate information on block deals (such as the name of the scrip, client name, quantity, and traded price) to the general public on the same day, after market hours. This ensures transparency while minimizing immediate market impact. Block deals are typically used by institutional investors (like mutual funds, foreign institutional investors) to buy or sell large chunks of shares without causing significant price volatility in the regular market.