Block Deal
A large trade executed in a dedicated exchange window at a negotiated price within a narrow band around the reference price.
Formula
Test: minimum order value as prescribed by the exchange, executed in the block window at a price within the permitted band of the reference price
Unit
₹ crore
In depth
Block deals exist so that very large transfers do not tear through the normal order book and distort the price for everyone else. They occur in short dedicated windows, must exceed a minimum value, and must price within a small band of the reference price, so they cannot be used to mark a price artificially. Both counterparties are disclosed to the exchange and the trade is published, which makes block deal data a useful record of who is entering or exiting. Block deals are frequently confused with bulk deals, which are ordinary market trades above a size threshold rather than window transactions.
Worked example
A fund sells 40 lakh shares at ₹500 in the block window, a ₹200 crore transfer done at one price. Pushed through the ordinary book, the same order might have walked the price down several percent and cost far more.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Block Deal” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.