SEBI Revises Block Deal Framework – Minimum Order Size Rs 25 Crore

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  • Last Updated on 13 October, 2025

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SEBI Block Deal Framework 2025

Circular No. SEBI/HO/MRD/POD-III/CIR/P/2025/134; Dated: 08.10.2025

1. Introduction to the Revised Block Deal Framework

Securities and Exchange Board of India (SEBI) has revised its Block Deal Framework to bring more transparency, efficiency, and uniformity to the execution of large trades. A block deal is the execution of significant volumes of shares through a single transaction, ensuring that neither the buyer nor the seller faces a disadvantage due to price fluctuations during trade execution.

2. Minimum Order Size

Under the new framework, the minimum order size for block deals is set at ₹25 crore. This ensures that only genuinely large institutional or high-net-worth transactions qualify under the block deal mechanism, thereby reducing speculative participation and improving market integrity.

3. Morning Block Deal Window

The morning block deal window will operate between 8:45 AM and 9:00 AM.

The reference price for execution during this period will be the previous day’s closing price of the stock.

This early window allows institutional investors to complete large transactions before the regular market opens, thereby minimizing price volatility and providing liquidity at a predictable reference price.

4. Afternoon Block Deal Window

The afternoon block deal window will operate between 2:05 PM and 2:20 PM.

Here, the reference price is based on the Volume-Weighted Average Price (VWAP) of trades executed in the cash segment between 1:45 PM and 2:00 PM.

This ensures that large trades take place at a fair market value reflecting active trading during the day.

5. Conclusion

This revision of the Block Deal Framework reflects SEBI’s ongoing efforts to enhance transparency, minimize volatility, and protect investor interests.
By introducing clear timelines, reference pricing mechanisms, and mandatory delivery, the regulator aims to strengthen market confidence and encourage institutional participation in a structured manner.

Click Here To Read The Full Circular

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied