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

News Desk26 Oct 2026 2 min read

India’s smallcap sell-off is intensifying as margin trading facility (MTF) positions decline from record levels. With nearly Rs 72,000 crore exposed to smallcaps, force…

India’s smallcap sell-off is intensifying as margin trading facility (MTF) positions decline from record levels. With nearly Rs 72,000 crore exposed to smallcaps, forced liquidations could deepen losses, although SEBI safeguards may limit systemic risks.

Why this matters

Regulatory and legal changes affect how businesses file, pay and stay compliant. Even small amendments can change deadlines, disclosures or penalties, so it pays to understand the context before acting.

What to watch

Track the official notification or judgment for exact wording and effective dates. If your business is directly affected, review your filings, contracts and internal timelines with a qualified professional.

Disclaimer

This is general information for awareness only, not legal, tax or investment advice. For guidance on your specific situation, speak to a qualified professional.

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