New Delhi, May 25 -- The Securities and Exchange Board of India (Sebi) has proposed a broad framework for the introduction and management of strike prices in options contracts to ensure trading continues during periods of heightened market volatility.

In a consultation paper issued on Monday, the market regulator said exchanges should put in place a comprehensive mechanism governing the introduction, review and removal of option strike prices across derivatives segments including equity, currency and commodities.

A strike price is the predetermined price at which an options contract gives the buyer the right to buy or sell the underlying asset.

Sebi said existing regulatory provisions only cover rationalisation of strike intervals for ...