What is the meaning of bulk deal?
A deal which happens under a single client code in either single or multiple transactions and involves more than 0.5% of equity shares of a company is known as a bulk deal. It can be materialised at any time during the trading hours in a day. It has the following features:
- The deal should involve at least 0.5% of the equity shares of the company listed in an exchange or a scrip.
- The broker is completely responsible for the transaction and about notifying the exchange about the bulk deals daily.
- It happens in a single trade transaction.
- The trade should materialise in delivery and cannot be reversed.
- All surveillance, risk and regulation measures applicable in common trading are applied here as well.
- It is mostly the mutual funds, asset management companies, insurance companies, banks etc. which participate in these deals.