SEBI Revises Block Deal Framework: Introduces Dual Trading Windows and ₹25 Cr Minimum Order Limit [Read Notification]

The Securities and Exchange Board of India (SEBI) issued a Circular dated October 8, 2025, announcing a revised Block Deal Framework to bring more transparency, efficiency, and fairness in large trades on stock exchanges. The new framework modifies the existing rules and will come into effect 60 days from the date of issuance.

According to SEBI, a block deal refers to the execution of large trades between two parties through a single transaction without putting either the buyer or seller at a disadvantage. The updated framework introduces two dedicated trading windows: a Morning Block Deal Window and an Afternoon Block Deal Window to give investors more flexibility and better price discovery.

The Morning Block Deal Window will operate from 8:45 AM to 9:00 AM, with the previous day’s closing price as the reference price. The Afternoon Block Deal Window will function from 2:05 PM to 2:20 PM, with the Volume Weighted Average Price (VWAP) of trades executed between 1:45 PM and 2:00 PM serving as the reference price.

During the five-minute interval from 2:00 PM to 2:05 PM, stock exchanges will calculate and publish the VWAP before block deal trading resumes.

The circular mandates that all block deal orders must be placed within ±3% of the applicable reference price. It also increases the minimum order size to Rs. 25 crore to ensure only genuine large-value transactions qualify under this window. All block deals must result in actual delivery of shares, and trades cannot be squared off or reversed.

Stock exchanges are required to disclose details of all block deals including the name of the security, client name, traded quantity, and price on the same day after market hours. The revised norms will also apply to block deals under the optional T+0 settlement cycle, in addition to the existing T+1 cycle.

SEBI directed all Market Infrastructure Institutions (MIIs) including stock exchanges, clearing corporations, and depositories to make necessary system changes, rule amendments, and public disclosures to implement the revised framework.

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