RBI funding rules impact India's derivatives trading
pre-market1 source ↓written by the desknot a recommendation
- for most broker
- 100% collateral
India's equity derivatives market is experiencing a significant slowdown, with average daily turnover down 27.1% in July to ₹1.7 trillion, the lowest since November 2023. The Reserve Bank of India's new funding rules, effective July 1, restrict banks from funding brokers' proprietary trading and mandate 100% collateral for most broker funding. This change is expected to further squeeze trading activity as older bank guarantees expire.
Not investment advice. For informational purposes only.