New Delhi, Sept. 1 -- Mumbai: Blocks look set to surpass initial public offerings (IPOs) in fiscal year 2026 (FY26), says Mahesh Natarajan, head ofequity capital markets (ECM) at Nomura, who has around two decades of experience in the segment.

"Last year, blocks totalled approximately $17 billion; this year, we're already at approximately $13 billion. The key is confidence: issuers now believe large transactions can be absorbed, and investors are comfortable with bigger blocks," Natarajan said, referring to block deals, or a transaction for a large quantity of shares of a listed company.

The real challenge is extreme volatility: it pauses markets, he explained. When the volatility index crosses the 20 level, there is a pause, for instan...