Difference between the Bulk Deal and Block Deal:
Bulk Deals:
Definition:
A bulk deal is a transaction where the total quantity of shares traded in a single stock exceeds 0.5% of the company’s total listed shares.
Trading Window:
Bulk deals occur during regular trading hours, alongside regular market transactions.
Impact:
Because they occur during regular trading hours, bulk deals can be visible to all market participants and may influence the stock price due to the volume of shares traded.
Reporting:
Brokers are required to report bulk deals to the stock exchange at the end of the trading day.
Block Deals:
Definition:
A block deal involves a large transaction (minimum of 5 lakh shares or shares worth at least ₹10 crores) in a single trade.
Trading Window:
Block deals are executed during a special trading window, separate from regular market hours, to facilitate these large transactions.
Impact:
While block deals can also influence stock prices, they are often negotiated privately between the buyer and seller, and the market reaction may be less immediate than with bulk deals.
Reporting:
Block deals are reported to the stock exchange within a specific timeframe after the transaction.