Difference between block and bulk deals

DIFFERENCE BETWEEN BLOCK & BULK DEALS

Block Deal:

  1. Transaction of a minimum quantity
    of 500,000 shares or a minimum value
    of Rs 5 crore between two parties,
    wherein they agree to buy or sell
    shares at an agreed price among
    themselves.
  2. The deal takes place through a
    separate trading window and they
    happen at the beginning of trading
    hours for the duration of 35 minutes
    i.e. from 9.15 am to 9.50 am. Every
    trade has to result in delivery.
  3. Block deals are not visible to the
    regular market as they happen in a
    separate window.
  4. Stock exchanges should disclose the
    information on block deals to the
    public on the same day after the
    market hour.

Bulk Deal:

  1. Bulk deal is a trade where the total
    quantity of shares bought or sold is
    more than 0.5% of the number of
    shares of a listed company.
  2. Bulk deals happen during normal
    trading window provided by the
    broker.
  3. Bulk deal orders are visible to
    everyone.
  4. The broker who manages the bulk
    deal trade has to provide the details
    of the transaction to the stock
    exchanges whenever they happen

Numerous traders pointlessly get energized seeing some names in
block/bulk deals and try to trade the same stocks. Bulk/block deal
doesn’t mean that the stock price will increase.
Investors must do their analysis before entering the trade.

MASTER STOCK TRADING AND TRADE WITH CONFIDENCE
-TRADELOGICAL
Website: http://www.tradelogical.com

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