Relax restrictive block deal rules; FPIs request SEBI

Foreign Portfolio Investors (FPI) are seeking an extension of the time window for block deals and relaxation of order limit by writing to SEBI with the assistance of ASIFMA (Asia Securities Industry & Financial Markets Association), a body representing FPIs said a national news portal.

Apr 19, 2017 08:04 IST India Infoline News Service

Foreign Portfolio Investors (FPI) are seeking an extension of the time window for block deals and relaxation of order limit by writing to SEBI with the assistance of ASIFMA (Asia Securities Industry & Financial Markets Association), a body representing FPIs said a national news portal.
 
More often FPIs, venture capitalists, mutual funds, financial institutions, insurance companies trade in block deals.
 
Block trades are an important tool for institutions to control impact costs.
If block trades are restricted then market stress, information leakage and volatility would increase, which would discourage FPIs from trading in India & ultimately affect the development of India’s capital market in an adverse manner, said a market analyst.
 
Block deal is a trade, with a minimum quantity of 5 lakh shares or minimum value of Rs 5 crore, executed through a single transaction, on the special block deal window.
The window is open for only 35 minutes in the morning trading hours.

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