The Securities and Exchange Board of India (SEBI) has increased the minimum threshold for block deals to ₹25 crore, up from ₹10 crore, a decision that is anticipated to transform trading dynamics and enhance overall market liquidity, according to analysts.
SEBI has also broadened the price band within which block orders can be executed. Block trades are facilitated through a designated trading window offered by stock exchanges.
Market experts believe this regulatory adjustment will have significant implications for market liquidity and trading behaviors. “Raising the block deal threshold to ₹25 crore should filter out the noise, reserving the special window for only the largest, high-conviction trades,” said Tarun Singh, Founder and Managing Director of Highbrow Securities. He added that this change is likely to channel additional liquidity into the primary market, improving price discovery and making block windows more indicative of major market movements.
Khushi Mistry, an analyst at Bonanza, echoed this sentiment, noting that the regulatory change is intended to enhance transparency, reduce speculative trading, and reinforce market integrity. “This shift is expected to improve overall market liquidity in the main order book, as smaller institutional and high-net-worth individual (HNI) trades that previously utilized the block deal option will now be transacted alongside regular trades.”
Mistry further suggested that the normal market could experience increased liquidity from mid-sized trades, with enhanced transparency and regulatory oversight over significant transactions, which would bolster market confidence.
Experts indicate that these changes could lead to smoother price fluctuations and better alignment between trading volume and stock valuations.
Published on October 9, 2025.