Overview
- The Securities and Exchange Board of India published a consultation paper on Monday, May 25, 2026, proposing a standardised framework for introducing and managing option strike prices and asking for public comments through June 15, 2026.
- The paper would require exchanges to maintain minimum numbers of in-the-money and out-of-the-money strikes and to review available strikes daily to keep contracts near the prevailing market price.
- SEBI proposes that exchanges be able to add new strike prices intraday in the direction of market moves without forcing system changes for brokers or other market participants.
- The framework would apply across equity, currency and commodity derivatives while leaving detailed operational choices—such as strike intervals, number of contracts and wider gaps for distant strikes—to each exchange, subject to published rules and market consultation.
- If adopted, the changes aim to reduce trader disruption during sharp price moves, harmonise differing exchange practices and replace an older provision on long-dated index-option strike rationalisation once the new system is operational.