'Biggest nightmare': Nithin Kamath warns MTF boom could worsen selloff in small and midcap stocks

South Korea's sharp stock market selloff has prompted Zerodha founder Nithin Kamath to warn that India's growing margin-funded investing ecosystem could face similar risks during a severe market correction.

Zerodha co-founder Nithin Kamath warned that rapid growth in margin trading funding could amplify market downturns, especially in small- and mid-cap stocks. He cautioned that forced selling, liquidity constraints and rising leverage may intensify losses despite SEBI’s safeguards.