Nithin Kamath has warned that rapidly rising margin trading facility (MTF) exposure across brokerages could become a major risk for India’s stock market ecosystem if markets witness a sharp correction. In a detailed post on social media platform X, the Zerodha co-founder said MTF books continue to expand aggressively even though Indian equity markets have largely moved sideways in recent months.
Kamath contrasted the current situation with markets such as South Korea, where investors borrowed heavily during a sharp rally. "This isn't like the Korean markets, for example, where the markets are up 150% in the last year alone, and people are borrowing to ride that rally. Our situation is different," he said.
