Brokers may end up with losses: Kamath on MTF risk amid volatility

Zerodha co-founder Nithin Kamath warned of systemic risks in Margin Trading Facility (MTF) in volatile Indian markets. MTF is a service from stockbrokers that lets one buy stocks by paying only part of the total amount, while the broker funds the rest as loan. "If markets crash...brokers could end up holding losses from MTF positions they can't exit," he said.