SEBI Proposes Framework For Managing Options Strike Availability During Sharp Intraday Volatility

The Securities and Exchange Board of India (SEBI) on Monday proposed a framework for introducing and managing options strike contracts in the derivatives market, aiming to ensure relevant contracts remain available when markets see sharp intraday volatility.

According to SEBI, stock exchanges currently follow different approaches for introducing and managing strike prices for options contracts.

The regulator said sharp intraday price movements can push the market beyond the available range of strike prices, leaving traders without options contracts around the prevailing market price.

Its proposal would require exchanges to review strike availability every day, remove contracts that are too far from the prevailing market price, and introduce new strike contracts during market hours as prices move.

SEBI has also proposed leaving the operational rules for implementing the framework to individual stock exchanges, with periodic reviews to be carried out in consultation with market participants.

The proposed framework would cover options contracts in the equity, currency and commodity segments.

Public comments have been invited till June 15, 2026.