The Securities and Exchange Board of India (SEBI) has proposed a standardized framework for managing strike prices of options contracts, aimed at improving trading continuity and ease of doing business in derivatives markets. The proposal, announced on May 25, 2026, seeks to ensure that new strike prices can be added in real-time during sharp market moves, reducing disruptions for traders.
According to SEBI's consultation paper, the framework would allow exchanges to introduce additional strike prices intraday when the underlying asset price moves significantly beyond the existing range. This is designed to prevent situations where traders cannot hedge or speculate due to a lack of available strike prices. The proposal is open for public comments until June 15, 2026.
Market participants have generally welcomed the move, noting that it could enhance liquidity and reduce volatility during periods of high market stress. However, some have raised concerns about potential operational challenges and the need for clear guidelines on when and how new strikes are added. SEBI has indicated that it will consider feedback before finalizing the rules.
