New Delhi, July 2 -- The immediate impact of the Reserve Bank of India's (RBI) bar on bank funding for proprietary (prop) traders is likely to be felt in trading volumes of weekly Nifty and Sensex options contracts, according to brokers. They added the measure would result in exporting volumes to foreign traders over time.

The impact stems from the RBI's stricter collateral norms, which effectively require proprietary traders to provide 100% collateral to access bank funding for stock market trading.

The revised norms, which came into effect on 1 July, affect overdraft facilities used by proprietary traders. Earlier, traders could access overdraft by providing part cash collateral (25%) and the balance through shares as collateral.

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