Market regulator Securities and Exchange Board of India (Sebi) has floated a consultation paper proposing a new framework for the introduction and management of strike prices in options contracts, aimed at ensuring smoother trading during periods of sharp intraday volatility.
The market regulator in a three-page consultation paper said the proposal seeks to improve predictability and availability of option strikes, especially in situations where rapid price swings push the underlying asset beyond the farthest available strike price, creating inconvenience for traders.
