MTF Book Hits Record High at Rs 1.48 Lakh Crore as August F&O Turnover Falls

MTF financing continues to expand, while derivatives activity declines amid CAS implementation, tighter funding norms and higher trading costs

The average Margin Trading Facility (MTF) book rose 4.1% sequentially and 53.6% year-on-year to Rs 1.48 lakh crore in August 2026, marking a new all-time high. The growth was supported by continued demand for leveraged equity exposure, with NSE accounting for more than 96% of the segment.

At the same time, Average Daily Turnover (ADTO) across the futures and options (F&O) and equity segments declined 22.2% sequentially and 16.2% year-on-year to Rs 348 lakh crore. The decline was led by a 22.3% sequential fall in F&O ADTO, while cash-market activity remained broadly stable.

MTF Book Extends Growth Momentum

The average MTF book stood at Rs 1.48 lakh crore in August 2026, up 4.1% from July. Although monthly growth moderated over the previous three months, the MTF book recorded a strong 53.6% year-on-year increase, compared with 24.2% growth in August 2025.

The continued expansion reflects sustained retail participation and demand for leveraged equity positions despite intermittent market volatility. MTF has also seen increasing adoption as a financing avenue for equity trading and has become an important revenue driver for stockbrokers.

According to data from NSE and BSE, the average MTF is calculated using data from all Tuesdays in the month along with the last working day of each month.

NSE Retains More Than 96% Share of MTF Segment

NSE continued to account for more than 96% of total MTF volumes. Its average MTF book stood at Rs 1.36 lakh crore in August 2026, registering a 53.8% year-on-year increase. On a sequential basis, the NSE MTF book increased by Rs 0.06 lakh crore.

The MTF book of the Bombay Stock Exchange (BSE) remained considerably smaller but also recorded growth. It increased 49.2% year-on-year to Rs 0.06 lakh crore in August 2026.

F&O ADTO Declines Following CAS Implementation

ADTO across F&O and equity stood at Rs 348 lakh crore in August 2026, down 22.2% sequentially and 16.2% year-on-year.

The primary contributor to the decline was F&O activity, where ADTO fell 22.3% sequentially to Rs 346 lakh crore. The decline followed SEBI’s implementation of the Closing Auction Session (CAS) on August 3, 2026.

The report states that CAS introduced greater uncertainty around the closing prices of underlying stocks, increasing settlement and hedging risks for derivatives participants, particularly around expiry. This resulted in lower position sizes, increased hedging and reduced leveraged and proprietary trading activity.

The decline in F&O volumes was also influenced by tighter RBI funding norms for capital-market exposures, higher transaction costs and continued moderation in retail participation following earlier SEBI regulatory measures.

Cash-Market Turnover Remains Broadly Stable

Cash-market activity remained broadly flat sequentially during August, with equity ADTO at Rs 1.30 lakh crore.

The implementation of CAS had a more limited effect on cash-equity trading. Its impact was largely concentrated around the timing and execution of trades near the market close, leading to some liquidity concentration during the auction window rather than a significant reduction in overall cash-market volumes.

Continued institutional participation, healthy equity investment activity and strong primary-market activity supported cash-market turnover. Domestic institutions, particularly mutual funds, remained active, while continued buying by foreign portfolio investors (FPIs) also provided support.

Investor interest in equities, together with a strong pipeline of IPOs and other primary-market issuances, helped offset moderation in short-term and retail-led trading activity. As a result, cash-segment ADTO remained broadly stable during the month.