RBI funding rules impact India's derivatives trading
after close1 source ↓written by the desknot a recommendation
- in July
- 27.1%
- in July
- ₹1.7 trillion
- for most broker
- 100% collateral
India’s equity derivatives trading is facing a downturn as average daily turnover in equity futures and options has dropped 27.1% in July to ₹1.7 trillion, the lowest since November 2023. The Reserve Bank of India’s new funding rules, effective from July 1, restrict banks from funding brokers’ proprietary trading, requiring 100% collateral for most broker funding. This change is expected to further squeeze trading activity as bank guarantees begin to expire.
Not investment advice. For informational purposes only.