Is MTF going to be a problem in India?

Hey I saw this on twitter, I remember Nithin telling our market has the least amount of leverage involved.
I think MTF is becoming a trend here and it could only make markets more volatile I feel.

What do you think about this?

I found angel’s client funding related info from their investor presentation

~ nearly a 2k crore book it has

If anyone can find the data for other brokers client funding book please share it here

1 Like

Hi @Krishnakumar @Prakashsingh

Interesting question. was reading more about this topic and found this

With the recovery in secondary market returns from Q2FY24, the margin trade funding (MTF) book of brokers in general and especially those led by banks, has been achieving new highs. The aggregate industry-wide MTF exposure soared 98 per cent from March 2023 when it was Rs 26,000 crore to Rs 51,000 crore in December 2023, Icra said in a report.

The margin funding, wherein an investor pays 25-35 per cent of the stock value he or she buys and the rest is paid by brokers for a monthly interest of 12-15 per cent, stood at Rs 29,000 crore for the whole of January 2023 but jumped to Rs 54,537 crore as of January 16, 2024.