Overview
- SEBI published a consultation paper on Monday, May 25, proposing a unified set of rules for how exchanges introduce and manage option strike prices.
- The paper would require exchanges to keep a minimum number of in‑the‑money and out‑of‑the‑money strikes and to review strike availability daily so contracts stay close to prevailing prices.
- SEBI proposed allowing exchanges to add new strikes during market hours in the direction of price moves and said those intraday additions should not require system changes by brokers or traders.
- Operational details such as strike intervals, how many contracts to list, and wider gaps for distant strikes will be left to each exchange, and SEBI would withdraw a separate rule on long‑dated index strike rationalisation once the new framework is running.
- The consultation is open until June 15, 2026, after which SEBI will review feedback and exchanges must publish and periodically consult on their local strike‑management frameworks, a step that could reduce gaps in tradable options during sharp swings and improve intraday liquidity.