Derivatives trading on India’s National Stock Exchange (NSE) declines following new Reserve Bank of India (RBI) requirements affecting bank guarantees used in trading. Multiple reports say the activity drop follows RBI instructions that bank guarantees must be fully backed by collateral. The rules include a stipulation that at least half of the collateral must be held in cash. As a result, the cost and operational burden of providing compliant collateral increases for market participants, which the reports link to weaker derivatives volumes on the exchange. The decline is framed as a direct response to the RBI curbs rather than a broader change in market direction, with the trigger specifically tied to how guarantees are structured and funded. Market participants adjust to the updated requirements by restructuring their guarantee backing and liquidity. The NSE drop is therefore presented as a near-term impact of tighter collateralisation norms for bank guarantees under RBI oversight.