Description
BSE announces updated strike price intervals for equity derivatives across 70 scrips, ranging from ₹1 to ₹250 intervals based on underlying security price levels.
Summary
BSE has issued an updated list of strike price intervals for equity derivatives trading. The circular specifies strike price intervals for 70 scrips, with intervals ranging from ₹1 to ₹250 based on the underlying security’s price level. These intervals determine the granularity of available strike prices in the options chain for each security.
Key Points
- Strike price intervals specified for 70 equity derivative scrips
- Intervals range from ₹1 (lowest) to ₹250 (highest) based on security price levels
- Highest interval of ₹250 applies to Bosch Ltd (BOSH)
- Lowest interval of ₹1 applies to Canara Bank (CANB), GAIL, GMR Airports, IDFC First Bank, Vodafone Idea, Indian Energy Exchange, and IOC
- Most scrips have intervals of ₹5, ₹10, or ₹20
- Premium scrips like Bajaj Auto have ₹100 interval, Dixon Technologies has ₹100 interval
Regulatory Changes
This circular provides the current strike price interval structure for equity derivatives. The intervals are set to ensure appropriate liquidity distribution across strike prices while maintaining reasonable granularity for different price ranges of underlying securities.
Compliance Requirements
- Market participants must use the specified strike price intervals when trading equity derivatives
- All new option contracts must adhere to these interval specifications
- Trading members and participants should update their systems with the correct strike price intervals
Important Dates
- Circular Date: December 19, 2025
- Effective immediately for all equity derivatives trading
Impact Assessment
Market Impact: Medium - Affects all equity derivatives traders and market makers. Proper strike price intervals ensure balanced liquidity across the options chain.
Operational Impact: Low to Medium - Trading systems and platforms need to maintain accurate strike price interval data for contract generation and display.
Trader Impact: Medium - Strike price intervals affect option strategy implementation, particularly for specific strike selection in strategies like iron condors, butterflies, and calendar spreads. Wider intervals reduce choice but may concentrate liquidity.
Impact Justification
Standard operational circular affecting derivatives traders. Updates strike price intervals for 70 scrips which impacts option chain availability and trading strategies but does not change fundamental market structure.