National Stock Exchange of India hit by RBI’s tighter funding rules as derivatives volumes plunge 23%

The National Stock Exchange saw its average daily notional turnover for derivatives drop 23% to ₹214 trillion (roughly $2.2 trillion) in July 2026, hitting a 17-month low not seen since February 2025. Overall NSE derivatives turnover fell 2% month-over-month, dropping from ₹43.4 lakh crore in June to ₹42.7 lakh crore in July. Smaller firms face an existential threatThe 100% collateral requirement doesn’t hit every market participant equally. Large, well-capitalized brokerages can absorb the additional margin burden, but smaller trading firms face a different situation. The concern is that smaller firms face a binary choice: exit the market or relocate operations offshore.