MTF Momentum Rises as ADTO Stabilises in September 2025

CareEdge highlights steady margin trading growth despite softer turnover trends

India’s equity markets recorded a strong rise in Margin Trading Facility (MTF) activity in September 2025, even as overall trading turnover normalised. The CareEdge Monthly Market Trends Report shows that MTF usage continues accelerating, while ADTO remains at stable yet moderated levels amid shifting investor sentiment and regulatory updates.

The September 2025 edition of CareEdge’s Monthly Market Trends Report reveals that India’s Margin Trading Facility (MTF) segment continued its upward trajectory, even as broader trading volumes moderated. According to the report, the average MTF book expanded to ₹1.02 lakh crore, marking a 19% year-on-year increase from September 2024. This growth reflects the rising adoption of leveraged equity products among retail traders and brokers’ continued focus on MTF as a preferred financing avenue following tighter rules in other leveraged segments.

Exchange-wise trends showed consistent strength across both platforms.

• NSE, which dominates the MTF landscape with over 95% market share, saw its book rise from ₹0.82 lakh crore to ₹0.97 lakh crore, up 19% YoY.
• BSE, operating from a much smaller base, grew from ₹0.03 lakh crore to ₹0.05 lakh crore, an impressive 35% YoY increase.

CareEdge notes that while growth has been positive overall, the expansion has been uneven throughout the year. The market witnessed temporary dips during January–March 2025, followed by strong rebounds in July and September, reflecting the market’s sensitivity to corrections, policy updates, and investor risk appetite.

On the turnover front, Average Daily Turnover (ADTO) showed a more measured trend. Total ADTO in September 2025 stood at ₹437 lakh crore, a decline of 18.8% YoY due to softer activity levels and a consolidating market environment.

• The F&O segment, which accounts for nearly all turnover, recorded ₹436.12 lakh crore, down 15.9% YoY, impacted by regulatory adjustments such as higher STT on options.
• The cash market maintained relative stability, generating ₹1.06 lakh crore, declining only 7.2% YoY, with balanced retail and institutional participation.

CareEdge Ratings commented that MTF continues to reflect healthy momentum, recording 5.5% month-on-month growth in September. The agency expects the segment to remain on a strong footing due to investor interest, favourable market sentiment, and the brokerage industry’s push to diversify revenue streams.

Even with fluctuating turnover, the report suggests that the market is entering a phase of stabilisation, marked by selective participation and sustained delivery-based trading. The resilience of the cash market and expanding MTF books indicate underlying investor confidence in equities.