New Delhi, May 20 -- Zerodha Co-founder Nithin Kamath has cautioned that the rapid rise in margin trading facility (MTF) exposure across India's brokerage industry could emerge as a serious threat to the broader stock market ecosystem if equities witness a sharp downturn.

In a detailed post on social media platform X, the Zerodha co-founder said MTF books have continued expanding aggressively despite Indian markets largely moving sideways over the past few months.

Kamath said the current Indian market setup is very different from markets such as South Korea, where investors borrowed heavily during a strong rally. "This isn't like the Korean markets, for example, where the markets are up 150% in the last year alone, and people are borrow...