SEBI proposes uniform system for setting strike prices across exchanges
Business
SEBI has proposed a fresh, uniform system for setting strike prices on options contracts across all exchanges.
This comes after traders struggled with wild market swings that pushed prices way past available contract levels, making it tough to find the right options when things got hectic.
Exchanges to list minimum near-market strikes
With the new plan, exchanges will have to offer a minimum number of contracts (both in-the-money and out-of-the-money) right around current market prices.
Strike prices will be reviewed daily so they stay relevant, and outdated options will get removed.
SEBI hopes this makes trading less confusing and more efficient, especially when markets are volatile.