Sebi proposes significant changes in country’s block deal framework
New Delhi: The Securities and Exchange Board of India (Sebi) on Friday proposed significant changes in India’s block deal framework, including raising the minimum order size and widening the price band for such trades.
According to a consultation paper released on its website, Sebi suggested increasing the minimum block deal size to Rs 250 million from the current Rs 100 million. A block deal allows large trades to be executed in a single transaction without impacting market prices, with stock exchanges providing a separate trading window for such transactions.
The regulator also proposed widening the price band for block trades in non-derivative stocks to 3 per cent on either side of the reference price, compared to the existing 1 per cent. For futures and op-tions stocks, the 1 per cent band would remain unchanged.
Two block deal windows have been recommended: from 8:45 a.m. to 9:00 a.m., with the pre-vious day’s closing price as reference, and from 2:05 p.m. to 2:20 p.m., with the reference be-ing the volume-weighted average price between 1:30 p.m. and 2:00 p.m.
The draft proposals are based on feedback from exchanges, clearing corporations, and stakeholders.
Separately, Sebi chairman Tuhin Kanta Pandey announced measures aimed at boosting women’s participation in mutual funds.
Speaking at an Association of Mutual Funds in India (Am-fi) event, he said the regulator plans to introduce additional distribution incentives for first-time women investors.
“Financial inclusion will remain incomplete unless women are equally represented,” Pandey said, adding that such incentives would also expand mutual fund penetration in underrepre-sented tier-2 and tier-3 cities.
He further noted that Sebi is reviewing the categorisation of mutual fund schemes to allow greater product innovation, remove overlaps, and enhance clarity. Based on stakeholder feed-back, further steps will be taken.
As part of its compliance simplification drive, Sebi has also discontinued the requirement for asset management companies to file over 52 reports, notices, and addendums.
The regulator plans further rationalisation of mutual fund regulations in the coming months, with the dual goal of easing compliance and safeguarding investor
interests.
