bulk & block deal
This query is : Resolved
20 January 2010
What do you mean by Bulk & Block deal in share market. Specify the limits and differentiate them.
21 January 2010
Bulk deal Vs. Block deal
Exchange provides a separate window for block deals. Bulk deals happen from normal trading windows that brokers provide.
There is only 35 minutes time window for block deals. Bulk deals can happen at any time during the trading hours.
Usually there will be one or none block deals in a day. There will be many bulk deals in a day.
A block deal should be a delivery trade i.e. the delivery of securities happens at T+2 days where as bulk deals are usually ‘day trades’ i.e. buy and sell on same day.
Block deals are associated with a minimum quantity of five lakh shares or a minimum value of Rs 5 crore. A transaction is a bulk deal if the total traded quantity exceeds 0.5% of the number of equity shares of a company.
What if the number of shares traded satisfies the quantitative definition of both bulk and block deals? For e.g. A transaction of 5, 75,000 shares (more than 0.5% of total shares) of a company whose total number of shares are 11, 00, 00,000. In this case if the transactions are traded by a separate trade window and are done on delivery basis they go into the list of block deals. If the transaction is a day trade it goes to the list of bulk deals. Usually we see transactions involving above 5, 00,000 shares under bulk deals section as day trades.
The orders in a block deal are not shown to the people who trade from normal trade window. Bulk orders are visible to every one.
Usually, in a block deal, the trade happens between two agreed parties. It happens when one party would like to buy or sell to other party at an agreed price between them. Bulk deals are market driven.
regards,
CA Jatin Bansal
Exchange provides a separate window for block deals. Bulk deals happen from normal trading windows that brokers provide.
There is only 35 minutes time window for block deals. Bulk deals can happen at any time during the trading hours.
Usually there will be one or none block deals in a day. There will be many bulk deals in a day.
A block deal should be a delivery trade i.e. the delivery of securities happens at T+2 days where as bulk deals are usually ‘day trades’ i.e. buy and sell on same day.
Block deals are associated with a minimum quantity of five lakh shares or a minimum value of Rs 5 crore. A transaction is a bulk deal if the total traded quantity exceeds 0.5% of the number of equity shares of a company.
What if the number of shares traded satisfies the quantitative definition of both bulk and block deals? For e.g. A transaction of 5, 75,000 shares (more than 0.5% of total shares) of a company whose total number of shares are 11, 00, 00,000. In this case if the transactions are traded by a separate trade window and are done on delivery basis they go into the list of block deals. If the transaction is a day trade it goes to the list of bulk deals. Usually we see transactions involving above 5, 00,000 shares under bulk deals section as day trades.
The orders in a block deal are not shown to the people who trade from normal trade window. Bulk orders are visible to every one.
Usually, in a block deal, the trade happens between two agreed parties. It happens when one party would like to buy or sell to other party at an agreed price between them. Bulk deals are market driven.
regards,
CA Jatin Bansal
22 January 2010
Thanks sir, nice reply. I am full oblized.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- ITC temporary reversal and reclaim
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- TDS U/S. 194NF
- Applicable TDS rate for sale of property in Nov 2024
- Tds on building rent monthly
- Event company query
- MIS MATCH OF INVOICE NUMBER
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
Trending Online Classes
CAclubindia
