NSE-BSE bulk deals: IDBI Bank sells stake in Zicom Electronic

NSE-BSE bulk deals: IDBI Bank sells stake in Zicom Electronic

Subject : Economics

Context : IDBI Bank NSE 0.26 % today sold 500,000 shares of Zicom Electronic Security NSE 4.00 % at Rs 1.3 per share through a bulk deal on the National Stock Exchange.

Concept :

Bulk Deals

• 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.