The Securities and Exchange Board of India (SEBI) has revamped the block deal framework to enhance transparency and efficiency in large trades. This move is expected to improve the overall trading environment in the Indian stock market.
Some key changes introduced by SEBI include:
- Increased transparency: SEBI has made it mandatory for block deals to be reported to the stock exchanges within a specified timeframe, which will help in maintaining transparency in large trades.
- Reduced timelines: The regulator has reduced the timelines for reporting and settlement of block deals, which will help in reducing the risk of price manipulation and improving market efficiency.
- Improved disclosures: SEBI has introduced stricter disclosure norms for block deals, which will help investors make informed decisions.
- Enhanced monitoring: The regulator will closely monitor block deals to detect and prevent any suspicious activities, such as insider trading or front-running.
These changes are expected to benefit market participants, including investors, brokers, and companies, by providing a more transparent and efficient framework for large trades. The revamped framework will also help SEBI in its efforts to maintain fair market practices and protect the interests of investors.
Overall, the revamp of the block deal framework is a positive step towards enhancing the transparency and efficiency of the Indian stock market, and it is expected to contribute to the growth and development of the country’s capital markets.