SEBI proposes options strike framework
Analysis based on 16 articles · First reported May 25, 2026 · Last updated May 25, 2026
The proposed framework by the India — Securities and Exchange Board of India is expected to improve trading continuity and ease of business in the derivatives market, particularly during periods of high volatility. This could lead to more stable and efficient trading for market participants, potentially increasing liquidity and reducing operational challenges for exchanges like the National Stock Exchange of India and brokers.
The India — Securities and Exchange Board of India (SEBI) has proposed a standardized framework for introducing and managing strike prices of options contracts across all exchanges, including equity, currency, and commodity derivatives segments. This initiative aims to ensure the availability of options contracts during periods of heightened intraday volatility, thereby improving trading continuity and ease of business for market participants. Key proposals include requiring exchanges to maintain a minimum number of in-the-money and out-of-the-money contracts, conduct daily reviews of strike availability, and periodically remove strikes far from market levels. A significant aspect is the provision for intraday introduction of new strike prices in the direction of price movement, without requiring system changes for brokers. The framework will grant exchanges flexibility in operational details like strike intervals, but they must publish and periodically review their frameworks in consultation with market participants. Public comments on the proposal are invited until June 15, 2026.
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