Bulk deals and Block deals are done in stock exchanges, when the trading quantity is high & there are separate windows for such deals in the stock exchanges.
These deals are done only on delivery basis, in listed shares.
These deals should be reported by the concerned member to the exchange on the same day. Such deals are usually done by institutional players ( both domestic - Insurance companies, Banks, Mutual funds and high net worth individuals and foreign - FIIs ).
These deals are done separately to avoid risk & unwanted price changes in the market. Both bulk deals & block deals should be reported by concerned exchanges to the public on the same day.
Apart from the above the differences in the above two Bulk Deals, Block Deals modes are:
In block deals, a single transaction of five (5) lakh shares or / a minimum value of Rs. five (5) crores between two (2) parties is done, within the first few minutes of trading.
In bulk deals the traded quantity should be 0.5% of the company's equity, and can be done anytime during trading hours.
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