Margin trading facility book grows for third straight month, hits ₹1.33 trn

The Margin trading facility (MTF) book surged in June for the third consecutive month — rising to a record ₹1.33 trillion, hinting at a strong appetite among investors for leverage bets despite market fluctuations.

 

As of June 24, the MTF book recorded a jump of 5.9 per cent month-on-month. In April and May, it had grown by 9.7 per cent and 8.8 per cent, respectively.

 

In comparison, the leverage facility had witnessed a decline for the first time in February after growing for 10 months. The decline had continued in March with MTF softening to ₹1.05 trillion in March amidst cautiousness and volatility.

 

Despite the minor blip, the MTF book has sustained above ₹1 trillion since October 2025.

 

The rise is also on the back of several brokers offering the facility in recent years.

 

MTF allows investors to pay only a portion of the trade value upfront, with brokers funding the rest at an interest cost. 

 

Brokers added that the easing of tensions in West Asia along with the decline in oil prices have improved investor sentiment.

 

“On the MTF front, while the absolute numbers appear elevated and are touching record levels, the book size remains comfortable when viewed in the context of the overall market capitalisation and daily turnover. Importantly, the exposure is highly granular and well-diversified across a large number of stocks, with hardly any single-stock position exceeding approximately ₹2,200 crore. This broad distribution significantly mitigates concentration risk. We also expect MTF growth to sustain in the near term,” said Roop Bhootra, Wholetime Director, Anand Rathi Share and Stock Brokers.

 

After the turmoil in May, the benchmark indices in June so far have gained and remained in the positive territory. For instance, Sensex is up 3.1 per cent and Nifty is 2.1 per cent up as of June 24.

 

CareEdge Ratings, in its recent report released last week (on May data), had noted that improvement in cash market’s average daily turnover was supported by higher investor participation and MTF activity.

 

“Looking ahead, with the easing of geopolitical tensions in West Asia and a gradual improvement in investor sentiment, capital market activity is expected to remain supportive going forward. Consequently, the MTF book could witness further growth, driven by increased investor participation and improving market confidence,” it added.

 

However, it cautions that the implementation of the Reserve Bank of India’s regulatory amendments on capital market exposure could affect trading volumes and overall market activity once the revised framework takes effect. The norms were deferred from April and will be effective from July 1.

 

The report adds that NSE continues to dominate the MTF segment with a 96 per cent market share. However, BSE has also recorded strong growth year on year.