Description
BSE updates strike price intervals for equity derivative contracts across various scrips, ranging from ₹1 to ₹250 depending on the underlying security.
Summary
BSE has published the updated list of strike price intervals for equity derivative contracts across various scrips. The intervals range from ₹1 to ₹250 depending on the underlying security’s price levels and volatility characteristics. This standardization helps in maintaining uniform trading parameters and optimal liquidity in the derivatives segment.
Key Points
- Strike price intervals vary from ₹1 (low-priced stocks like GAIL, CANB, IOCL, IDEA, GMRI, IDBL, IEEX) to ₹250 (high-priced stocks like BOSH - Bosch Ltd)
- Most blue-chip stocks have intervals of ₹5-₹50 depending on their price range
- The list covers 70+ actively traded derivative scrips including major indices constituents
- Common intervals: ₹1, ₹2.5, ₹5, ₹10, ₹20, ₹50, ₹100, and ₹250
- Major stocks include HDFC Bank (₹5), ICICI Bank (₹10), Infosys (₹20), Reliance (not shown in excerpt), and others
Regulatory Changes
No new regulatory changes. This is a standard operational circular providing current strike price interval information for market participants.
Compliance Requirements
- Trading members must use the specified strike price intervals when trading options contracts
- All derivative contracts must conform to the published strike price intervals for respective scrips
- Market participants should refer to this list for creating derivative strategies and positions
Important Dates
- Circular Date: December 19, 2025
- Effective immediately for all derivative trading activities
Impact Assessment
Market Impact: Medium - Affects derivative traders, option writers, and institutional participants using these scrips for hedging or speculation.
Operational Impact: Ensures standardized strike price availability, improving liquidity concentration at specific strikes rather than fragmentation across multiple strikes. This benefits market makers and retail traders by providing better price discovery and tighter bid-ask spreads.
Trading Impact: Traders need to align their strategies with available strike prices. Wider intervals (like ₹250 for Bosch) may limit precise hedging for high-value stocks, while narrow intervals (₹1-₹2.5) provide granular options for lower-priced securities.
Impact Justification
Operational update affecting derivative traders and market participants; standardizes strike price intervals for better liquidity and trading efficiency across 70+ scrips.