5paisa Raises MTF Limit to ₹10 Crore, Expands Leveraged Investing Offering

5paisa has increased its Margin Trading Facility (MTF) limit to ₹10 crore, significantly expanding the amount of funded exposure available to eligible users on the platform. The move comes at a time when interest in leveraged equity investing and margin-based delivery trading continues to rise among active market participants in India.

Margin Trading Facility allows investors to buy stocks by paying only a part of the transaction value upfront, while the broker funds the remaining amount. Under SEBI’s framework, MTF is currently permitted only in approved securities, with brokers required to maintain margin and risk management systems.

Alongside the higher limit, 5paisa continues to position its MTF product around competitive funding costs, with interest rates starting from 9.5% per annum for lower funding slabs. According to the company’s product page, the facility offers leverage of up to 4x on eligible stocks, with interest charged daily on the funded amount and billed periodically. 

The platform’s MTF offering also includes features such as:

• Funding across a list of 1500+ eligible stocks

• Daily interest calculation with slab-based pricing

• Pledge-based collateral structure for cashless trading

• Long holding periods for funded positions

• Integrated access through the trading platform

The broader MTF segment has seen steady growth in recent years as more retail investors adopt leveraged delivery-based trading strategies. Industry estimates suggest the overall MTF book in India has expanded sharply over the last two years, driven by increased participation from discount brokers and more competitive pricing across the industry.

However, market experts continue to caution that while MTF can enhance purchasing power, it also increases risk exposure. Since positions are funded by borrowed capital, traders remain exposed to interest costs, margin calls, and liquidation risks if markets move sharply against their positions.