Kishan Parekh
Written and reviewed by Kishan Parekh

Founder, Underpitch · Source review includes AMFI, SEBI, NSE, RBI, IRDAI, exchange, company or insurer documents where relevant.

Reviewed
2 July 2026
Direct answer

A bulk deal is reported when total shares bought or sold by a client in a security during a trading day exceed the exchange’s specified percentage threshold—currently more than 0.5% of listed equity shares on NSE. A block deal is executed in a separate block-deal window under exchange rules and minimum-value conditions. Rules can change, so verify current exchange FAQs.

Key points

  • Bulk describes daily quantity crossing a reporting threshold.
  • Block describes execution through a designated window.
  • A transaction can require different reporting treatment depending on how it is executed.
  • Neither type automatically predicts the next stock-price move.

Bulk-deal reporting

NSE describes a bulk deal as total transactions in a security where the quantity bought or sold is more than 0.5% of the listed equity shares. The trades can occur through the normal market and are disclosed after the threshold is crossed.

Block-deal execution

Block deals use designated exchange sessions and follow current rules for minimum order value, price range and matching. NSE’s current FAQ should be checked before publishing a precise threshold because exchange rules can be revised.

How investors should read the data

Identify the buyer and seller, whether the trade is an entry or exit, the percentage of company equity, the trade price, subsequent filings and whether the deal changes strategic ownership. Large volume alone does not prove informed buying or distress selling.

Worked Indian example

Illustration

A fund sells 0.7% of a company through normal-market transactions during one day. It can appear as a bulk deal because the daily quantity crosses the reporting threshold. A separate negotiated institutional transaction executed within the designated exchange window may be reported as a block deal. The labels describe reporting and execution—not investment quality.

Comparison table

FeatureBulk dealBlock deal
Core testDaily quantity thresholdDesignated exchange window and rule conditions
ExecutionCan occur in normal marketSpecial session/window
DisclosureClient, quantity, price and sideBuyer/seller and block trade details
Investment meaningNeeds contextNeeds context

Always verify the latest exchange circulars and FAQs.

Risks and limitations

  • Thresholds and operating rules can change.
  • A single deal may be portfolio rebalancing rather than a business view.
  • Names can represent custodians or fund entities that require verification.
  • Price may react before public interpretation and then reverse.

Frequently asked questions

What is the NSE bulk-deal threshold?

NSE currently states more than 0.5% of listed equity shares bought or sold by a client during the day. Verify the current exchange page before relying on the figure.

What is the minimum value for a block deal?

The applicable minimum value is set by current exchange rules and can change. Refer to the latest NSE block-deal FAQ.

Does a bulk purchase mean the stock will rise?

No. It shows a reported transaction, not a guaranteed future price direction.

Can the same institution appear on both sides?

Different funds, schemes or managed accounts under a broader institution can transact differently. Verify the exact disclosed entity.

Sources and methodology

Rules, thresholds and product terms can change. Verify the latest official page and the current product document before relying on a figure.

Last verified: 2 July 2026  ·  Next scheduled review: 2 October 2026
Kishan Parekh, founder of Underpitch
Kishan ParekhFounder, Underpitch · Ahmedabad AMFI ARN-180568 · LIC Agency LIC03127842 · Tata AIG Agency AIG3153530000
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