The Securities and Exchange Board of India suggested raising the minimum block hall size to 250 million rupees of the current 100 million rupees, published on its website according to a consultation document.
A block deal is used to carry out large transactions through a single transaction without placing the buyer or seller in an adverse position. For such transactions, stock exchanges may provide a separate trading window.
Sebi also proposed changes in the price band of Blokhandel for non-derivatives shares, so that it was broadened to 3% on either side of the reference price of the share of the current 1%. It suggested retaining the price band of 1% for futures and options shares.
The regulator suggested keeping two windows for such deals – the morning session from 8.45 am to 9 am, and the afternoon session 2:05 pm to 2.20 pm ist.
Sebi said that for the morning window the reference price for the execution of block offers would be the closing price of the shares the previous day. Before the afternoon session, the reference price would be the volume weighted average market price of the transactions carried out in the share in the cash segment between 13:30 and 14:00 ist. The concept circular of the regulator was based on the feedback received from various stakeholders, fairs and clearing companies.
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