Sebi May Raise Minimum Block Deal Size, Widen Band

Discusses reform measures with exchanges, market participants

- KHUSHBOO TIWARI

The Securities and Exchange Board of India (Sebi) is considering a fresh round of reforms to its block deal framework, with proposals to raise the minimum trade size and widen the permissible price range, according to people familiar with the matter.

The markets regulator, according to the sources, is weighing an increase in the minimum block deal size to ₹25 crore, from the current ₹10 crore, in a bid to channel smaller trades towards the regular cash market. The existing threshold was set in 2017, when Sebi last carried out a major overhaul of the framework.

Another significant change under discussion concerns the price band for block deals. At present, trades can be executed within a 1 per cent band on either side of the previous day's closing price. Sebi is understood to be considering a wider band of up to 3 per cent for non-derivative stocks, while retaining the 1 per cent band for futures and options (F&O) scrips to reduce the risk of market manipulation.