The Rs 1.5 lakh crore MTF problem: How shrinking leveraged positions are deepening India's smallcap sell-off

What happened: India's smallcap sell-off is intensifying as margin trading facility positions decline from record levels, with forced liquidations potentially deepening losses. Key numbers: MTF positions have fallen from record levels. Nearly Rs 72,000 crore is exposed to smallcaps. The headline references a Rs 1.5 lakh crore MTF problem. Why it matters: Forced liquidations could deepen losses in smallcaps, although SEBI safeguards may limit systemic risks.

India's smallcap sell-off is intensifying as margin trading facility positions decline from record levels, with forced liquidations potentially deepening losses.

Forced liquidations could deepen losses in smallcaps, although SEBI safeguards may limit systemic risks.