RBI funding curbs slash Indian index derivatives turnover, paving way for FPIs
July saw NSE index futures turnover drop 17% and options premium fall 16% as the RBI’s new funding rules choke leverage for proprietary traders. With bank credit tightening, domestic prop desks are expected to scale back, while foreign portfolio investors and deep‑pocketed players stand to capture the gap. The trend could deepen in coming months.