Margin trading SEBI new rules 2026

Wed, 20 May 2026 00:00:00 +0000

Margin Trading Funding (MTF) lets retail clients buy equity using broker-extended credit, paying interest on the borrowed portion. SEBI’s 2026 framework for MTF tightened eligibility, increased broker capital requirements, and introduced more stringent risk disclosures. This article summarises the key changes.

What MTF is (background)

In MTF, the client puts in a portion of the purchase price (typically 25-50%) as initial margin; the broker funds the rest. The shares are pledged as collateral against the loan. Interest accrues daily until the position is closed.

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Margin trading SEBI new rules 2026

What MTF is (background)