What is bulk deal and block deal?

A "bulk deal" occurs when the total quantity of shares bought or sold in a single stock exceeds 0.5% of the company's listed equity shares in one or multiple transactions on the same day.

In contrast, a block deal executes large trades in a single transaction, ensuring neither party is disadvantaged. Stock exchanges provide a separate trading window for this purpose.

Key differences:

• Transaction size: A bulk deal is defined by a percentage of a company's total shares (usually 0.5%), while a minimum number of shares determines a block deal.
• Trading window: Bulk deals happen during regular market hours, while block deals occur in a separate dedicated "block deal window".
• Transparency: Bulk deals are visible to all market participants during trading, while block deals are less transparent as they happen in a separate window.