What is Bulk Deal ?

What is Bulk Deal?

Definition of Block Deal, How Block Deal is done, Is Block Deal Good for Stock, Is Block Deal Positive or Negative 

Definition: A bulk deal is a deal where the total quantity of shares bought or sold is more than 0.5% of the number of equity shares of the listed company.

Bulk deals happen during the normal trading window provided by the broker. It is a market-driven deal.

This deal is visible to everyone trading on the stock exchange. The broker who manages the bulk deal is required to provide the details of the transaction to the stock exchanges.

If 0.5% or more is bought and 0.5% or more is sold during the same trading session, it would be deemed as two separate bulk deals and would require two separate disclosures.

Since percentages of shares and money involved in and Bulk Deals are quite high, retail investors do not participate in such transactions.

It is Institutional investors like foreign institutional investors, super HNIs (high net worth individuals), mutual fund houses, insurance companies, banks, venture capitalists, and other financial institutions are the major participants in these types of deals.

Sometimes, even promoters participate in bulk deals, especially to arrange the issues related to cross-holdings.