New Delhi, July 29 -- Zerodha Founder and CEO Nithin Kamath on Wednesday said the sharp boom-and-bust witnessed in South Korea's stock market has highlighted the risks associated with rising margin funding in India, warning that a steep market correction could trigger widespread selling in small- and mid-cap stocks.

In a post on X, Kamath described the developments in the Korean market as his "biggest nightmare" as a broker, saying the rapid growth in Margin Trading Facility (MTF) books across the industry has significantly increased market risks.

"My biggest nightmare as a broker is what's happening in the Korean markets right now. The source of my nightmare is the way our MTF book has been growing along with the industry as a whole," ...