The Securities and Exchange Board of India (SEBI) is reworking how the order-to-trade ratio (OTR) is computed for options, with plans to shift from a strike-price-linked model to one based on option premiums, people familiar with the matter said. Under the revised framework, only orders beyond ±40 per cent of the option premium, or ₹20, whichever is higher, would count towards OTR. The revised proposal instead ties the ratio to premiums, ensuring that only orders significantly away from the option price are considered. SEBI will be increasing the penalty for a daily OTR between 50 and 250 orders per trade to 10 paise from 2 paise per order. The next slab, between 250 and 500, may rise from 10 paise to 20 paise; 500–1,000 could go from 15 paise to 25 paise; 1,000–2,000 from 20 paise to 50 paise; and above 2,000 from 25 paise to 75 paise.