What is meant by Block deal? How is it being executed in the Stock Exchange ?

SEBI vide its circular MRD/DoP/SE/Cir-19/2005 dated September 02, 2005 prescribed guidelines for execution of large size trade through a single transaction. In order to facilitate execution of such large trades, stock exchanges were permitted to provide a separate trading Window. A trade executed on this separate trading window was termed as 'block deal'. Execution of Block Deal Session timings: Morning Block Deal Window: This window shall operate between 08:45 AM to 09:00 AM. The reference price for execution of block deals in this window shall be the previous day closing price of the stock. Afternoon Block Deal Window: This window shall operate between 02:05 PM to 02:20 PM. The reference price for block deals in this window shall be the volume weighted average market price (VWAP) of the trade executed in the stock in the cash segment between 01:45 PM to 02:00 PM. The minimum order size for execution of trades in the block deal window shall be ₹10 crores. The orders placed shall be within ± 1% of the applicable reference price in the respective windows as stated above. Every trade executed in the block deal Windows must result in delivery and cannot be squared off or reversed. The stock exchanges disseminate the information on block deals such as the name of the script, name of the client, quantity of shares bought/sold, price, etc. to the general public on the same day, after the market hours.