Margin trading: why discount brokers are betting big on MTF despite the risks

India's margin trading facility (MTF) book hit a record 1.27 trillion rupees in May, up 65% year-on-year, as discount brokers like Groww and Angel One expand MTF offerings to diversify revenue after SEBI's derivatives curbs. Groww's MTF book grew nearly five-fold to 2,814 crore rupees in Q4 FY26, while Angel One's client funding book rose 60% to 5,850 crore rupees. Both brokers charge about 15% annual interest on MTF loans, with the segment contributing 7-7.5% of their revenue versus 47-55% from equity derivatives broking.