Understanding Large Stock Transactions

The question asks to identify the term for a significant trade in a listed company's equity shares, specifically when a single transaction or a series of transactions under one client code involves more than 0.5% of the company's total shares.

Analyzing the Options

Let's examine each option in the context of the question's criteria:

• Basket trading system: This refers to buying or selling a group of different stocks together as a single package. It doesn't specifically relate to the percentage threshold of a single company's shares or a single client code trading a large portion.
• Free float capitalisation: This is a method of calculating a company's market value based only on the shares that are readily available for trading in the market (excluding promoter holdings, government stakes, etc.). It's a valuation metric, not a type of transaction.
• Bulk deals: According to stock market regulations (like those from SEBI), a bulk deal is defined as a transaction where the total quantity of shares traded, either bought or sold, is greater than or equal to 0.5% of the total number of equity shares of the listed company, and this trade is executed within a single trading day under a single client code. This perfectly matches the description in the question.
• Block deals: Block deals also involve large quantities of shares, typically executed away from the regular market trading order book. While they represent large trades, the specific definition often involves a minimum number of shares (e.g., 5 lakh shares) or a minimum transaction value (e.g., ₹5 crore), and the defining criterion for the question (specifically 0.5% of equity shares traded by a single client code) aligns more precisely with the definition of a bulk deal.

Conclusion on Large Trades

Based on the analysis, the term that specifically describes a transaction or set of transactions where a single client code trades more than 0.5% of a listed company's equity shares is a Bulk deal.