Description

BSE revises block deal framework with new price range of +3% from reference price and minimum order size of Rs. 25 Crores, effective December 08, 2025.

Summary

BSE has updated the block deal framework following SEBI circular dated October 08, 2025. The key changes include a revised price range of +3% from the applicable reference price and an increased minimum order size of Rs. 25 Crores. These changes will be effective from December 08, 2025, for equity segment trading and will apply to securities traded under the optional T+0 settlement cycle as well.

Key Points

  • Price range for block deal orders revised to +3% of the applicable reference price
  • Minimum order size increased to Rs. 25 Crores for execution in block deal windows
  • Changes applicable to both regular equity segment and T+0 settlement cycle securities
  • Effective date: December 08, 2025 (live trading)
  • Mock trading scheduled for December 06, 2025
  • All other existing modalities remain unchanged

Regulatory Changes

Price Range Modification

Orders placed in block deal windows must be within +3% of the applicable reference price, subject to surveillance measures and applicable price bands. This represents a tighter band compared to previous framework.

Order Size Revision

The minimum order size for execution of trades in block deal windows has been set at Rs. 25 Crores, ensuring that only large institutional-sized transactions qualify for the block deal mechanism.

Scope of Application

These provisions extend to securities traded under the optional T+0 settlement cycle, ensuring uniform application across different settlement mechanisms.

Compliance Requirements

  • Market participants must ensure block deal orders are placed within the +3% price range from reference price
  • Orders must meet the minimum threshold of Rs. 25 Crores for execution
  • Participants should review and update their trading systems before the implementation date
  • Testing should be conducted during the mock trading session on December 06, 2025
  • Updated FAQs will be available on BSE website under Markets > Equity > Block Deals section

Important Dates

  • November 21, 2025: Circular issued
  • December 06, 2025: Mock trading session for testing new framework
  • December 08, 2025: Implementation date for live trading in equity segment
  • December 08, 2025: Updated FAQs document to be published on BSE website

Impact Assessment

Market Impact

The tighter price range of +3% (compared to previous framework) may reduce price flexibility in block deal executions but ensures trades occur closer to market prices. The increased minimum order size of Rs. 25 Crores filters out smaller block trades, concentrating the mechanism for larger institutional transactions.

Operational Impact

Trading members and institutional investors will need to adjust their block deal strategies to accommodate the narrower price band and higher value threshold. This may lead to fewer but larger block deal transactions.

Regulatory Alignment

The changes align with SEBI’s broader review of the block deal framework (SEBI circular SEBI/HO/MRD/POD-III/CIR/P/2025/134 dated October 08, 2025) aimed at enhancing market integrity and price discovery in large trade executions.

Impact Justification

Moderate impact on block deal execution with tighter price range and higher minimum order size affecting large institutional trades