GK and monthly revision

MTF hits record Rs 1.27 lakh crore as investors borrow more to buy stocks. Is it a ticking time bomb?

In May 2026, the Margin Trading Facility (MTF) in India reached a record high of Rs 1.27 lakh crore, reflecting a 65.4% year-on-year increase. This surge in margin trading indicates that investors are borrowing more to invest in stocks despite stagnant market turnover and significant Foreign Institutional Investor (FII) outflows. The growing leverage raises concerns about potential systemic risks if the market conditions reverse, making it a critical issue for economic stability.