Margin funding book sees highest liquidation in a day
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓The combined NSE and BSE margin trading facility book fell by almost ₹3,000 crore on Friday to ₹1.51 trillion.
- ✓Brokers forced this liquidation after clients failed to top up margins on falling stocks.
- ✓This shift follows recent regulatory curbs on equity options and higher taxes on futures and options trading.
Story at a Glance
- Category
- BUSINESS
- Reported By
- Livemint
- Reading Speed
- 3 Minute(s)
- Market Focus
- India Economy
The combined NSE and BSE margin trading facility book declined by almost ₹3,000 crore on a net basis to ₹1.51 trillion on Friday from ₹1.54 trillion a day earlier, according to the portal.
If a stock falls, the broker makes a margin call, asking the client to provide additional margin or top up the haircut. If the client provides the additional margin, the position is retained. Failure to top up forces the broker to square off the client's position.
The MTF book is dominated by the NSE, which accounts for 95.1% of the total, or ₹1.43 trillion, with the BSE accounting for the rest. Brokers have funded positions in 644 actively traded stocks on the NSE and 197 stocks on the BSE, according to mtf.trading.
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