Explained: Why SEBI Is Reviewing Intraday Strike Prices in India’s Options Market
Dateline: April 28, 2026
Securities and Exchange Board of India (SEBI) is in discussions with stock exchanges and market participants on a proposal to allow exchanges to introduce new options strike prices during trading hours, according to people familiar with the matter.
The proposal—currently under consultation—aims to address gaps in strike price availability during sharp intraday market movements, where existing strike levels often fail to reflect prevailing prices.
An email sent to SEBI seeking official comments did not receive a response.
One person aware of the discussions said, “The key element under consideration is enabling exchanges to introduce strike prices intraday, particularly during sharp moves in the underlying asset.”
Also Check :
Why SEBI Is Looking at Strike Price Gaps in a High-Volume Market
The review comes amid sustained growth in India’s derivatives market, particularly in index options.
According to the National Stock Exchange’s derivatives report for March 2026, index options average daily turnover was in the range of ₹40–50 lakh crore, underlining the scale of trading activity.
Separately, a SEBI study on retail participation in futures and options found that over 90% of individual traders incurred net losses, highlighting structural risks in the segment.
SEBI’s internal observations indicate that during volatile sessions:
- Relevant strike prices are often unavailable
- Deep out-of-the-money strikes remain listed despite low activity
- Traders face execution gaps due to misaligned strike levels
Read More : Amazon Now Expands to 100 Cities; Swiggy, Eternal Shares Fall Up to 3%
How Fragmented Exchange Practices Led to This Proposal
Strike price management currently differs across exchanges and asset classes.
While index options follow relatively structured frameworks, stock, currency, and commodity options often rely on exchange-specific policies.
Another person familiar with the discussions said, “Not all exchanges currently allow adding strike prices intraday, which creates inconsistency across segments.”
To address this, SEBI is evaluating a uniform framework that would standardise:
- Introduction of strike prices across asset classes
- Ongoing monitoring and periodic review
- Public disclosure of strike price rules
What Intraday Strike Additions Could Change for Traders
Under the proposed framework, exchanges may introduce new strike prices during trading hours, particularly during sharp movements in the underlying asset.
This would allow options contracts to stay aligned with real-time market levels during volatile sessions.
The proposal also includes a design where such changes would not require system modifications for brokers during live trading.
SEBI has not released a consultation paper or implementation timeline so far.
Impact on Traders: More Relevant Strike Prices in Volatile Markets
For traders, especially in index options:
- Access to closer-to-market strike prices may improve execution
- Intraday strategies could become more precise
- Hedging during volatility may become more efficient
The change primarily targets active participants in short-duration options trading.
Impact on Investors: Indirect Influence Through Market Efficiency
For investors, the proposal is indirect but relevant.
Changes in derivatives market structure can influence:
- Price discovery in underlying stocks and indices
- Liquidity concentration in specific strike ranges
- Short-term volatility trends
FAQs: SEBI Intraday Strike Price Proposal Explained
What is SEBI proposing for options strike prices?
Securities and Exchange Board of India is evaluating a framework that allows exchanges to introduce new strike prices during trading hours.
Why is SEBI reviewing strike price rules now?
The review is driven by high derivatives trading volumes and gaps in strike availability during volatile sessions.
Will this apply across all derivatives segments?
Yes, the proposal aims to create a uniform framework across equity, commodity, and currency options.
Has SEBI released an official consultation paper?
No, the proposal is still under discussion.
How could this affect retail traders?
Retail traders may benefit from improved strike price availability and better execution.
Will brokers need system upgrades?
No, the framework is expected to avoid system changes during live trading.
