Block deal is execution of large trades through a single transaction. SEBI has already permitted Exchanges to provide a separate block deal window to facilitate execution of large trades. BSE provides block deal window mechanism in the Equity segment of the Exchange. Trading members are requested to refer to Exchange notice number 20230630-19 regarding Master Circular for Equity Segment dated June 30,2023 for details on Block deal Mechanism.
To enhance liquidity in units of Exchange Traded Funds (ETFs) on Stock Exchange platform, SEBI vide circular no SEBI/HO/IMD/DOF2/P/CIR/2022/69 dated May 23, 2022, had instructed Asset Management Companies (AMCs) that direct transaction with AMCs shall be facilitated for investors for redemption or subscription directly with the AMC for amount greater than Rs. 25 Crores.
Exchange hereby reiterates that ETFs are available for transacting in the existing block deal window mechanism in addition to transacting in normal trading segment to transact large trades in ETFs. All parameters in the block deal window such as order size of Rs 10 crores and above, price range of ±1% of the applicable reference price, reporting of deals, etc. as applicable for stocks are also applicable for ETFs.
Exchange conducts mock trading session in the Equity Segment every month. Members are requested to participate in the mock trading sessions to familiarize themselves with block deal mechanisms, particularly with respect to ETFs.
For and on behalf of BSE Ltd.,
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Ketan Jantre
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Sameer Vaze
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Head-Trading Operations
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DGM-Trading Operations
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