NSE Derivatives Volumes Crash 23% Amid RBI's Tighter Funding Rules

The National Stock Exchange of India (NSE) saw its worst derivatives trading month in over a year, with a 23% drop in average daily notional turnover to ₹214 trillion ($2.2 trillion) in July 2026.

This decline marks a 17-month low, last seen in February 2025. The new rules implemented by the RBI aim to curb proprietary trading and excessive leverage by requiring brokers to hold 100% collateral against any funding they receive.

The regulations started phasing in during April, giving market participants time to adjust. However, July marked the first full month under the complete regulatory framework, resulting in a dramatic thinning of individual trading sessions.

BSE, on the other hand, posted an 8.4% increase in derivatives turnover in July compared to June, suggesting that trading activity is migrating rather than evaporating.