SEBI has proposed a new framework to manage strike prices of options contracts to address market volatility, ensuring continuous availability of options contracts aligned with prevailing market prices.
SEBI Reviews Framework for Options Contract Strike Prices
The Securities and Exchange Board of India (SEBI) has proposed a new framework targeting the management of strike prices for options contracts. This initiative is a response to concerns regarding sharp intraday market volatility impacting the effective pricing and availability of options contracts.
The proposed framework seeks to establish mechanisms that maintain alignment between strike prices and market prices, which would facilitate more predictable trading conditions for investors. By ensuring the continuous availability of relevant options contracts, SEBI aims to enhance market stability.
Legal professionals advising clients in derivatives trading and options market operations should monitor these proposals closely, as they will represent significant changes in compliance and operational strategies that may affect traders’ planning and risk management initiatives.
Citations
- SEBI Proposal (2026) Options Contracts
