Bulk Deals vs. Block Deals: Key Difference Explained

Last Updated: 11 Aug 2025

The stock market includes different types of participants. The smaller participants are typically retail investors, regular individuals who actively invest in the market. On the other hand, the major players include high-net-worth individuals, promoters, and significant domestic and foreign institutional investors. These institutions oversee an enormous amount of assets that can move the market substantially.

These institutional investors also often possess privileged information about the firms they intend to invest in. They frequently engage in substantial trading volumes and frequently execute block or even bulk deals. You will encounter these two terms if you aspire to become a true investor. Therefore, this article will explore the distinctions between block deals vs bulk deals. While they may appear similar, they have distinct characteristics.

What are Block Deals in the Stock Market?

Let’s begin by elucidating the block deal’s meaning. A block deal is a single transaction involving the exchange of shares in quantities exceeding Rs. 5,00,000 or in cases where the total traded value surpasses Rs. 10 crores.

It’s worth noting that SEBI modified the criterion in 2017 for defining the value of the block deal from a fixed amount in crores to the current Rs 10 crores. In today’s stock market landscape, block deals occur within a designated trading window known as the “block deal window.” Importantly, due to the special nature of these transactions, block deals are not accessible to retail investors and are not displayed on the value charts of any trading platform.

While you might draw a parallel between subscribing to an upcoming IPO and a block deal, it’s crucial to recognise substantial differences in the quantity and value of shares involved.

The block deal window is open for 35 minutes after trading opens, and any block trading executed on this window has to be reported to the exchange immediately by the broker, and such a trade cannot be squared off intraday.

What are Bulk Deals in the Stock Market?

In the stock market, a Bulk Deal is a transaction in which a single entity, such as an institutional investor or a prominent trader, buys or sells a massive amount of a company’s shares in a single trade. The bulk deal definition varies depending on the stock exchange and regulatory authority. Still, it often entails a transaction in which the number of shares exchanged exceeds a proportion of the company’s total outstanding shares.

As per the bulk deal meaning, the transactions are generally disclosed to the stock exchange where the trade happens and made available to the public after the trading day. Market participants actively follow these transactions because they can give insights into the trading behaviour of institutional investors and other significant market participants, which can affect a stock’s price and the broader market mood.

Difference Between Bulk Deal and Block Deal

If you compare bulk deals vs block deals, you will come across multiple differences. Here’s a detailed look at them:

Aspect	Bulk Deals	Block Deals
Definition	Bulk Deal meaning involves the purchase or sale of a large quantity of shares of a company’s stock, typically exceeding a predefined threshold (e.g., 0.5% of total shares).	Block deals meaning involve the sale or purchase of a substantial number of shares (typically 5 lakh or more shares or a total value exceeding Rs. 5 crore) in a single transaction.
Transaction Size	Smaller compared to Block Deals.	Larger compared to Bulk Deals.
Impact on Market	May have a limited impact on the stock’s price, as they do not involve a significant percentage of the company’s shares.	Can have a more significant impact on the stock’s price, as they involve a substantial portion of the company’s shares, potentially leading to price fluctuations.
Reporting Requirements	Bulk Deal must be reported to the stock exchange within a specific time frame.	Block Deal must be reported to the stock exchange within a shorter time frame than Bulk Deals.
Disclosure	The names of buyers and sellers are disclosed to the public after the transaction is completed.	The names of buyers and sellers are disclosed to the public immediately after the transaction is executed.
Purpose	Often used by retail and institutional investors for portfolio management or trading purposes.	Typically used by institutional investors, such as mutual funds, to acquire or dispose of a significant stake in a company.
Regulation	Regulated by stock exchanges and market regulators.	Also regulated by stock exchanges and market regulators but is subject to stricter rules and reporting requirements.
Market Reaction	Less likely to attract immediate attention from the market and traders.	More likely to attract attention from market participants, leading to increased trading activity and volatility.

How do Block Deals and Bulk Deals Affect the Stock Market?

You already know the difference between block deals and bulk deals. Now, let’s find out about their impact on the stock market. Block or bulk deals involving a security or listed share frequently indicate growing interest in that stock. Multiple deals occurring for a stock indicate investors’ confidence. This means an upward trend in its share price in the short term. Large investors sometimes utilise this strategy to attract more buyers to a specific stock.

Any significant transactions in the current stock market undeniably have repercussions for small investors. But large investors are also affected at times. These transactions garner attention due to their size and magnitude, often leading investors to perceive the stocks as trustworthy. While block and bulk deals may offer insights into increasing or decreasing interest in a specific stock, it’s crucial to approach these signals cautiously. It’s essential to consider other indicators and trends before making trading decisions.

The mere implementation of the bulk order doesn’t guarantee that a specific stock will necessarily follow the bulk trade’s direction. However, repeated bulk deals in a consistent direction, whether buying or selling, may suggest a growing interest in the stock aligning with the bulk trade direction.

The Bottom Line

Understanding the difference between block and bulk deals is critical for traders and investors as they negotiate the complexity of the stock market. While both types of transactions involve large quantities, NSE bulk trades immediately impact real-time pricing and give insights into market sentiment.

On the other hand, a block deal is a series of discrete, pre-arranged trades executed off-market to minimise the immediate market effect. Comparing block deals vs bulk deals in stock market will help you make educated judgments that are in line with your trading techniques and risk tolerance.

Frequently Asked Questions

Can retail investors take part in the block deal process?

Retail investors usually are not a part of these transactions because they involve large volumes. Block deals are mostly negotiated between high-net-worth individuals or institutional investors.

What are the different regulatory guidelines for block deals?

Block deal transactions need to follow several regulations defined by the stock exchanges. These include value and minimum quantity limits.

Is it possible to execute bulk deals within the block deal window?

Bulk deals can be executed during the block deal window. But they must meet the necessary criteria for block trades.

Why are block deals so popular among investors and companies?

Block deals can be used to complete large trades without major price disruptions. This means that investors and companies are able to keep their trading intentions discreet.