Block Deals

Modus operandi

Large deals get registered on the exchanges periodically at a discount. These are secondary market deals. Whenever such big placement of shares takes place, which is known as block deals, there arises an opportunity. Normally such deals happen in large cap stocks. We key in buy orders slightly higher than the discounted price range at which the placement/deal is going to happen (which is known a day before as its public information). Most of the times we can get some quantity at the price as the deal get executed. The deal gets executed at its lowest end of discount, however this can’t be said with surety as deal may happen at the upper end of discount range too. Some transactions done by us are detailed in the below said table. The price thereafter typically moves up (as the block deal gets recorded at 1% to 8% discount) and after the block deal is registered we can get a decent 1% return on the same day. However, if the price doesn't move up we build in a stop loss at 0.65% to 0.9% of the purchase price and sell. This is typically an intraday trade.

Morgan Stanley Capital International (MSCI) Index

Index Methodology

This methodology covers investment opportunity which is set on Index liquidity, invest ability and replace ability. Addition and deduction in the index is reviewed quarterly – in February, May, August and November – with the objective of reflecting changes in underline equity market, FII holding, risk and return in particular company. During the index review, the index is rebalanced and the large and mid capitalization cutoff points are recalculated There is a vast movement in the stock which is added in MSCI from the date of announcement to the date of execution.

Abnormal Deliveries

Abnormal deliveries are huge transactions resulting into deliveries on a single day which are abnormally more in value compared to average delivery value traded.

Follow on Public Offer or Offer for Sale (FPO/OFS)

FPO/OFS provides an exchange based bidding platform to promoters to sell/dilute their holdings in listed companies in a transparent manner.

Stock Lending and Borrowing Market (SLBM)

The SLB scheme is facilitated by the National Securities Clearing Corporation of India (NSCCL), the clearing corporation of the National Stock Exchange of India (NSE), through a screen based exchange-traded system called SLB-NEAT. It has a centralized anonymous order book and all the borrowing and lending are cleared, settled and guaranteed. The expected lending fee is quoted as price and the tenures are available up to 12 months.