{
  "id": 13188625,
  "title": "Half of India’s MTF book is in smallcaps; Nithin Kamath flags liquidity risks",
  "url": "https://urgent.news/2026/10/09/half-of-indias-mtf-book-is-in-smallcaps-nithin-kamath-flags-liquidity",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-09T13:31:23.000Z",
  "source": {
    "name": "The Economic Times - Top News",
    "slug": "the-economic-times-top-news",
    "url": "https://economictimes.indiatimes.com/markets/stocks/news/half-of-indias-mtf-book-is-in-smallcaps-nithin-kamath-flags-liquidity-risks/articleshow/134835308.cms"
  },
  "original_language": "en",
  "account": "Nithin Kamath, the founder of Zerodha, has emphasized the significant concentration of India's margin trading facility (MTF) book in small-cap stocks, warning of the liquidity risks these companies face during market downturns or stagnation. In a recent post on X, Kamath presented charts displaying the distribution of the industry's funded amount across various market capitalization categories. These categories include large-cap (1-100), mid-cap (101-250), small-cap (251 onwards), micro-cap (501-750), and stocks not on AMFI's list (751 and above). According to the data, small-cap stocks constitute approximately 50% of the funded amount, while large-cap stocks account for 32% and mid-cap stocks for 18%. Kamath highlighted the liquidity vulnerabilities of smaller companies, noting that liquidity tends to dwindle first in these stocks when markets experience declines or stagnation, as is currently the case.",
  "summary": "Zerodha founder Nithin Kamath warned that small and microcap stocks account for a substantial share of India’s margin trading facility book. He highlighted liquidity risks during market downturns, when smaller stocks may face sharper selling pressure.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}