{"id":363124,"date":"2025-10-09T13:00:28","date_gmt":"2025-10-09T07:30:28","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=363124"},"modified":"2025-10-09T13:05:33","modified_gmt":"2025-10-09T07:35:33","slug":"sebi-notifies-revised-block-deal-framework-compliance-update-scc-times","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2025\/10\/09\/sebi-notifies-revised-block-deal-framework-compliance-update-scc-times\/","title":{"rendered":"SEBI Notifies Revised Block Deal Framework: Key Changes Effective December 2025"},"content":{"rendered":"<div style=\"text-align: justify; line-height: 150%;\">\n<p style=\"margin-bottom: 3%;\">On 8-10-2025, the Securities and Exchange Board of India (&#8216;<span style=\"font-weight: bold;\">SEBI<\/span>&#8217;) notified the <span style=\"font-weight: bold;\">Review of Block Deal Framework<\/span>, introducing a series of amendments aimed at strengthening transparency, efficiency, and regulatory oversight in large-volume equity trades. These changes reflect evolving market conditions and are based on recommendations from a SEBI Working Group, deliberations in the <span style=\"font-weight: bold;\">Secondary Market Advisory Committee<\/span> (&#8216;SMAC&#8217;), and public feedback.<\/p>\n<p style=\"margin-bottom: 3%;\">The revised framework will be effective 60 days from the date of notification, i.e.,<span style=\"font-weight: bold;\"> 7-12-2025<\/span>.<\/p>\n<h3>Key Takeaways:<\/h3>\n<ol style=\"list-style-type: decimal;\">\n<li>\n<p>A block deal refers to the execution of <span style=\"font-weight: bold;\">large trades<\/span> through a single transaction, typically negotiated between <span style=\"font-weight: bold;\">two parties<\/span>, without putting either the buyer or seller at a disadvantage. These trades are conducted in designated windows outside the regular market to minimize price disruption<\/p>\n<\/li>\n<li>\n<p>SEBI has formalized two distinct trading windows for block deals:<\/p>\n<ul style=\"list-style-type: disc;\">\n<li>\n<p><span style=\"font-weight: bold;\">Morning Block Deal Window<\/span>:<\/p>\n<p style=\"margin-left: 36pt; text-indent: -18pt;\">&#9675; Timing: 08:45 AM to 09:00 AM<\/p>\n<p style=\"margin-left: 36pt; text-indent: -18pt;\">&#9675; Reference Price: Previous day&#8217;s closing price<\/p>\n<\/li>\n<li>\n<p><span style=\"font-weight: bold;\">Afternoon Block Deal Window<\/span>:<\/p>\n<p style=\"margin-left: 36pt; text-indent: -18pt;\">&#9675; Timing: 02:05 PM to 02:20 PM<\/p>\n<p style=\"margin-left: 36pt; text-indent: -18pt;\">&#9675; Reference Price: Volume Weighted Average Price (&#8216;VWAP&#8217;) of trades executed between 01:45 PM and 02:00 PM<\/p>\n<p style=\"margin-left: 36pt; text-indent: -18pt;\">&#9675; VWAP is calculated and disseminated between 02:00 PM and 02:05 PM<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<li>\n<p>SEBI&#8217;s revised Block Deal Framework introduces several important changes to improve market transparency and efficiency.<\/p>\n<\/li>\n<li>\n<p>The minimum order size has been increased from <span style=\"font-weight: bold;\">&#8377;10 crore to &#8377;25 crore<\/span>, reflecting deeper market liquidity and institutional activity.<\/p>\n<\/li>\n<li>\n<p>The price band for block deals has been widened to +3% of the reference price, offering more flexibility than the earlier &plusmn;1% range.<\/p>\n<\/li>\n<li>\n<p>All trades must result in actual delivery, <span style=\"font-weight: bold;\">squaring off or reversal is not permitted<\/span>. Block deals are now allowed under both the T+1 and optional T+0 settlement cycles.<\/p>\n<\/li>\n<li>\n<p>Exchanges must disclose block deal details, including scrip name, client identity, quantity, and price, after market hours on the same day.<\/p>\n<\/li>\n<li>\n<p>Additionally, exchanges, clearing corporations, and depositories are required to apply standard trading, settlement, and surveillance protocols to block deal windows, ensuring consistency with regular market operations.<\/p>\n<\/li>\n<li>\n<p>Market Infrastructure Institutions (&#8216;MIIs&#8217;) have been directed to take necessary steps:<\/p>\n<ul style=\"list-style-type: disc;\">\n<li>\n<p>Implement necessary systems and processes<\/p>\n<\/li>\n<li>\n<p>Amend relevant byelaws, rules, and regulations<\/p>\n<\/li>\n<li>\n<p>Disseminate the circular to market participants and investors via their websites<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<li>\n<p style=\"margin-bottom: 3%;\">By raising thresholds, expanding price bands, and enforcing delivery and disclosure norms, the framework ensures that block deals remain a transparent and efficient mechanism for executing large trades.<\/p>\n<\/li>\n<\/ol>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p style=\"font-style: italic;\">SEBI updates Block Deal Framework to enhance transparency and efficiency by raising trade thresholds, widening price bands, expanding settlement options, and mandating timely disclosures.<\/p>\n","protected":false},"author":67525,"featured_media":363127,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4,1193],"tags":[90575,90579,90580,90576,90577,83440,2563,90578],"class_list":["post-363124","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legislationupdates","category-notifications","tag-block-deal-framework","tag-block-deal-windows","tag-equity-market-regulations","tag-equity-trading","tag-institutional-investors","tag-market-regulation","tag-SEBI","tag-settlement-cycles"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>SEBI Notifies Revised Block Deal Framework Update | SCC Times<\/title>\n<meta name=\"description\" content=\"SEBI notifies revised Block 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Through circulars dated 18-12-2002 and circular dated 05-07-2018 (all reviewing adjustment of corporate actions for stock\u2026","rel":"","context":"In &quot;Legislation Updates&quot;","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"SEBI","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-111-4.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-111-4.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-111-4.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-111-4.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-111-4.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":253575,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/09\/02\/sebi-revised-guidelines-for-liquidity-enhancement-scheme-in-the-equity-cash-and-equity-derivatives-segments\/","url_meta":{"origin":363124,"position":4},"title":"SEBI | Revised guidelines for Liquidity Enhancement Scheme in the Equity Cash and Equity Derivatives Segments","author":"Prachi Bhardwaj","date":"September 2, 2021","format":false,"excerpt":"The Securities and Exchange Board of India has notified revised guidelines for Liquidity Enhancement Scheme in the Equity Cash and Equity Derivatives Segments vide circular dated September 1, 2021 \u00a0 Initially, on April 23, 2014, SEBI had issued circular permitting stock exchanges to introduce liquidity enhancement schemes in the equity\u2026","rel":"","context":"In &quot;Legislation Updates&quot;","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/08\/MicrosoftTeams-image-135.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/08\/MicrosoftTeams-image-135.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/08\/MicrosoftTeams-image-135.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/08\/MicrosoftTeams-image-135.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/08\/MicrosoftTeams-image-135.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":188984,"url":"https:\/\/www.scconline.com\/blog\/post\/2018\/02\/14\/sebi-working-finance-ministry-new-framework-algorithm-trading\/","url_meta":{"origin":363124,"position":5},"title":"SEBI working with Finance Ministry on new framework on \u2018algorithm trading\u2019","author":"Saba","date":"February 14, 2018","format":false,"excerpt":"The Securities and Exchange Board of India (SEBI), in consultation with the Finance Ministry, is expected to reissue fresh guidelines on high-frequency trading (HFT), popularly known as \u2018algorithm trading\u2019, after taking feedback from market participants, to effectuate which, will soon issue a consultation paper seeking market feedback. The earlier proposal\u2026","rel":"","context":"In &quot;Business News&quot;","block_context":{"text":"Business News","link":"https:\/\/www.scconline.com\/blog\/post\/category\/news\/business_news\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/363124","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/67525"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=363124"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/363124\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/363127"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=363124"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=363124"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=363124"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}