SEBI seeks feedback on new options strike price mechanism

Securities and Exchange Board of India has proposed a new framework for managing strike prices in options contracts across equity, currency and commodity derivatives segments.

In a consultation paper issued on 25 May 2026, SEBI said the move aims to improve availability and predictability of options contracts during periods of sharp intraday volatility.

The regulator said sudden market swings can push prices beyond the farthest available strike prices, making relevant options contracts unavailable for traders.

Under the proposal, stock exchanges will have to create a framework for introducing, reviewing and removing strike prices. Exchanges will also conduct daily reviews to ensure adequate availability of in-the-money and out-of-the-money contracts around prevailing market prices.

SEBI has proposed allowing exchanges to introduce new strike prices intraday during market hours in the direction of price movement in the underlying asset or futures contract.

The regulator said such intraday additions should not require brokers or traders to make system changes during live market operations.

The framework will apply to all options segments, including equity, currency and commodities. Exchanges will also have to publish the framework on their websites and review it periodically in consultation with market participants.

SEBI has invited public comments on the proposals till 15 June 2026.

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