India's margin trading facility (MTF) book has grown roughly five-fold, from around Rs 25,000 crore in FY23 to over Rs 1.3 lakh crore today. Read in isolation, that number invites comparisons to the leverage-driven volatility seen overseas. Read in context, it is better understood as evidence of deepening cash-market participation, supported by a regulatory framework built specifically to avoid the structural risks that produced Kospi-style volatility.
The surge in retail participation, reflected in 13.1 crore investors (NSE) and over 23.16 crore demat accounts, has transformed India's equity landscape. In such an environment, the growing popularity of MTF is hardly surprising, offering investors a capital-efficient route to build equity positions.
