Indian regulator proposes new risk curbs, wider funding option as margin trading surges
Key takeaways
- Indian regulator proposes new risk curbs, wider funding option as margin trading surges.
- • India s MTF book has grown sharply in recent years, with outstanding positions reaching about 1.3 trillion rupees ($13.78 billion) by mid‑2026, around 50% higher than a year ago, according to exchange data
- • SEBI has proposed clearer caps on broker exposure based on net worth, along with safeguards to protect client funds.
Indian regulator proposes new risk curbs, wider funding option as margin trading surges. A general view of the the Securities and Exchange Board of India (SEBI) headquarters in Mumbai, India, September 12, 2025. REUTERS/Francis Mascarenhas · Reuters Reuters Thu, June 18, 2026 at 9:17 PM GMT+7 1 min read June 18 (Reuters) - India s markets regulator on Thursday proposed new measures to better manage risks and broaden funding avenues, as margin trading facility (MTF) volumes show an increase.Here are the details:
• The Securities and Exchange Board of India proposed to broaden funding and collateral flexibility for MTF by allowing traders to raise funds via non‑convertible debentures, and expand eligible collateral, in alignment with the broader cash market
• India s MTF book has grown sharply in recent years, with outstanding positions reaching about 1.3 trillion rupees ($13.78 billion) by mid‑2026, around 50% higher than a year ago, according to exchange data