What is the minimum amount of block deal?

A block trade refers to a single transaction involving a substantial quantity of shares or a significant monetary value. Specifically, it involves the exchange of at least five lakh shares or a minimum value of Rs 5 crore between two parties.

These transactions are typically conducted between institutional investors, such as mutual funds, pension funds, and insurance companies, who have a large investment portfolio.

Block trades are executed through a separate trading window, which is designed to facilitate the smooth and efficient execution of large orders.

This separate window ensures that the transaction does not disrupt the regular trading activity on the exchange, allowing for a more controlled and orderly process.

The minimum quantity and value requirements for block trades are set to ensure that only significant transactions are considered, thereby reducing the risk of market manipulation or other forms of abuse.