Description

BSE updates block deal framework with revised price range of +3% and minimum order size of Rs. 25 Crores, effective December 8, 2025.

Summary

BSE has issued an update to the block deal framework following SEBI circular SEBI/HO/MRD/POD-III/CIR/P/2025/134 dated October 8, 2025. The revised framework introduces stricter price range limits of +3% from reference price and increases the minimum order size to Rs. 25 Crores. These changes will be effective from December 8, 2025, and apply to both regular equity trading and securities under optional T+0 settlement cycle.

Key Points

  • Price range for block deals restricted to +3% of applicable reference price (subject to surveillance measures and price bands)
  • Minimum order size increased to Rs. 25 Crores for execution in block deal windows
  • Changes applicable to securities traded under optional T+0 settlement cycle
  • Implementation date: December 8, 2025
  • Mock trading scheduled for December 6, 2025
  • Updated FAQs to be available on BSE website by December 8, 2025

Regulatory Changes

Price Range Modification

Orders placed in block deal windows must now be within +3% of the applicable reference price, compared to previous limits. This applies in the respective block deal windows and remains subject to surveillance measures and applicable price bands.

Order Size Increase

The minimum order size for trade execution in block deal windows has been set at Rs. 25 Crores, representing a significant threshold for block deal participation.

T+0 Settlement Inclusion

The revised provisions explicitly apply to securities traded under the optional T+0 settlement cycle, ensuring consistency across settlement mechanisms.

Compliance Requirements

  • Market participants executing block deals must ensure orders are within the +3% price range from reference price
  • Minimum transaction value of Rs. 25 Crores must be maintained for all block deal executions
  • Participants should review updated FAQs document on BSE website before implementation
  • Trading systems and algorithms must be updated to reflect new price range and order size parameters
  • Participants should participate in mock trading session on December 6, 2025 to test compliance with new framework

Important Dates

  • October 8, 2025: SEBI circular SEBI/HO/MRD/POD-III/CIR/P/2025/134 issued
  • October 9, 2025: BSE circular 20251009-7 issued
  • November 21, 2025: Current update circular issued (Notice No 20251121-69)
  • December 6, 2025: Mock trading session scheduled for testing new framework
  • December 8, 2025: Revised block deal framework goes live for equity segment
  • December 8, 2025: Updated FAQs to be available on BSE website

Impact Assessment

Market Impact

The tighter price range of +3% will reduce price volatility in block deals and may limit flexibility for institutional investors negotiating large transactions. The increased minimum order size of Rs. 25 Crores will restrict block deal participation to larger institutional players, potentially reducing the number of block deal transactions while maintaining their quality.

Operational Impact

Brokers and institutional investors will need to update their trading systems, risk management frameworks, and execution strategies to comply with the new parameters. The inclusion of T+0 settlement securities ensures consistent treatment across different settlement cycles.

Liquidity Impact

The higher minimum order size may concentrate block deal activity among larger institutions, potentially affecting liquidity dynamics. However, the tighter price range could enhance price discovery and reduce information asymmetry in block deals.

Reference Information

Detailed information and FAQs will be available at: BSE Website -> Markets -> Equity -> Block Deals -> “To know more about Block Deals ‘click here’”

Impact Justification

Significant changes to block deal framework affecting price range and minimum order size will impact institutional trading strategies and market liquidity