Sebi Proposes New Options Framework Amid Volatile Markets
Sebi has suggested a detailed framework for managing strike prices in options contracts to ensure contract availability amid sharp market volatility. This includes daily reviews of options contracts by stock exchanges to match prevailing market levels, with a public comment period open until mid-June 2026.
The Securities and Exchange Board of India (Sebi) has unveiled a detailed proposal to manage strike prices in options contracts, ensuring their availability during highly volatile market conditions. This move addresses issues faced by market participants when drastic price movements occur.
The proposed framework mandates stock exchanges to establish a foundation for minimum in-the-money and out-of-the-money options, along with a daily reassessment of strike prices to maintain alignment with current market trends.
Sebi's plan includes the intraday introduction of new strike prices without requiring system changes from stock brokers during live trading. With operational specifics left to individual exchanges, the proposal is open for public feedback until June 15, 2026.
(With inputs from agencies.)
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