Bulk Deal Reporting
Bulk deal reporting is the mandatory disclosure obligation under SEBI's exchange framework requiring any entity that executes a trade in a listed security totalling 0.5% or more of the company's total equity shares in a single trading day (across all exchanges) to report the transaction to the stock exchange, which then discloses it publicly.
Bulk deal reporting norms exist to ensure transparency about significant transactions in listed securities that, while executed through the normal trading session (unlike block deals, which have a dedicated window), represent a material change in the ownership or interest of a significant quantity of shares. The threshold of 0.5% of the total number of equity shares listed on an exchange is applied on a per-exchange, per-day basis, meaning the same entity's trades on NSE and BSE on the same day are separately assessed.
Bulk deal disclosures must be reported by trading members (brokers) to their respective exchanges within the same day of trading. The exchange then publishes a consolidated bulk deals report after market hours, listing the name of the client (as provided by the broker), the scrip name, the type of transaction (buy or sell), the quantity, and the weighted average traded price. This post-session disclosure is designed to avoid front-running by preventing pre-disclosure of intentions.
The distinction between bulk deals and block deals is frequently confused. Bulk deals occur in the regular trading session and are reported after the fact; they may involve multiple smaller trades that cumulatively cross the 0.5% threshold. Block deals are pre-negotiated large single-transaction trades executed in the dedicated morning/afternoon window at a fixed negotiated price. A large institutional trade could, in principle, qualify as a bulk deal (if executed in the open market and crossing 0.5%) or a block deal (if executed in the dedicated window with a minimum ₹10 crore size).
Bulk deal disclosures are closely tracked by market participants because they reveal the trading activity of large institutions, promoters (selling shares through OFS-type transactions), and well-known investors. A series of bulk purchase disclosures by a known investor often signals accumulation, while sustained bulk sales by promoters may raise governance concerns. SEBI requires brokers to correctly identify the ultimate client behind bulk deals, which is critical for detecting potential insider trading or related-party transactions dressed up as independent large trades.
For compliance purposes, bulk deal reporting is distinct from (and complementary to) the shareholding disclosure requirements under SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, which trigger at 2%, 5%, and other ownership thresholds.