Shah Investors MTF Book Reaches Rs 20.9626 Crore, 476 Users

Shah Investors’ margin trading facility, or MTF, book reached Rs 20.9626 crore on March 31, 2026, while only 476 clients actively used the product. The active MTF users represented 1.25% of Shah Investors’ 38,189 active clients, despite the disclosed month-end MTF book series increasing from Rs 3.92 crore to Rs 20.9626 crore.

How large was Shah Investors’ MTF book and income?

Shah Investors reported funded MTF positions of Rs 20.9626 crore at March 31, 2026. MTF is a broker-funded equity cash-segment facility in which a client pledges eligible securities as collateral to purchase shares beyond the client’s available cash. Shah Investors registered for the facility in 2023, and clients pay interest on the amount funded until they sell the shares or repay the outstanding balance.

The disclosed MTF book series, measured on the last trading day of each month, ranged from Rs 3.92 crore to Rs 20.9626 crore across the 24 observations provided. Shah Investors earned Rs 2.2258 crore in MTF interest income in Fiscal 2026, equal to 3.11% of total revenue from operations. The company says MTF interest rates range from 10% to 18% and may rise to 24% under its prevailing business policy, making income dependent on funded balances, the applicable rate and the duration of positions.

How broad was Shah Investors’ MTF client use?

Shah Investors’ MTF client use remained limited relative to its overall active base, with 476 active MTF users representing 1.25% of 38,189 active clients at March 31, 2026. The company had 1,200 MTF-registered clients, so 724 registered clients were not counted as active MTF users in the disclosed metric. Shah Investors defines an active client as one that executed at least one trade during the preceding 12 months across broking, MTF and distribution offerings.

The MTF book was therefore supported by a smaller set of users than Shah Investors’ wider broking operation. The 115.18-day weighted average holding period at March 31, 2026 means that interest income is also affected by how long clients retain funded positions. For the MTF book to keep generating interest at the disclosed rate range of 10% to 18%, funded positions must remain open and clients must continue to meet their payment and margin obligations.

How concentrated was Shah Investors’ MTF exposure?

Shah Investors reported that its top 10 client exposures accounted for 16.32% of the Rs 20.9626 crore MTF book at March 31, 2026. Its top 10 stock exposures accounted for 12.48% of the same book. These measurements identify concentration by funded value, rather than by the number of MTF clients or securities held.

Sector exposure was more concentrated than the disclosed top-client and top-stock measures. Shah Investors said 10 sectors accounted for 65.49% of MTF funded positions at March 31, 2026: capital goods, finance, chemicals, information technology, automobile and ancillaries, infrastructure, healthcare, bank, power and business services. The company’s charts also show the top 10 clients’ daily share declining from 39% in August 2024 to 26% in March 2025, then from 23% in April 2025 to 16% in March 2026; the top 10 group may change because it is selected by funded value for each period.

How does Shah Investors control MTF lending and liquidation?

Shah Investors limits MTF availability to Group I securities, subject to Securities and Exchange Board of India, or SEBI, and stock-exchange norms. The company may also exclude securities following risk analysis, exchange surveillance alerts or trading suspension. It states that exposure may reach up to five times the margin available, although it can modify or restrict limits in exceptional market conditions.

Collateral value is reduced through a haircut, which is a percentage deduction from a security’s market value to account for price movements. Shah Investors’ illustration applies a 12.5% haircut to securities worth Rs 1.818 lakh, leaving Rs 1.59075 lakh as usable collateral. The same illustration shows that five-times leverage can support an MTF purchase of Rs 8.15518 lakh, subject to a 19.5% margin requirement comprising 9% value at risk, or VaR, and 10.5% extreme loss margin, or ELM.

Shah Investors revalues collateral and margins daily through mark-to-market, or MTM, assessment using prevailing market prices. If a margin shortfall occurs, clients must provide funds or eligible securities; Shah Investors may partly or fully close positions when margin cover falls below the prescribed level and a client does not meet a margin call. The company may liquidate pledged collateral to recover dues and uses an NSE-empanelled third-party software provider for real-time exposure monitoring and compliance with SEBI-prescribed limits.

Conclusion

Shah Investors’ MTF book reached Rs 20.9626 crore at March 31, 2026 and generated Rs 2.2258 crore of interest income in Fiscal 2026, but active use was confined to 476 clients, or 1.25% of the 38,189-client active base. Exposure was not dominated by the top 10 clients, which represented 16.32% of the book, although the top 10 sectors accounted for 65.49% of funded positions.

The next disclosed indicators are active-user conversion among the 1,200 registered MTF clients, the 115.18-day average holding period and the interest rate applied within the stated 10% to 18% range or up to the 24% policy maximum. MTF book growth will also depend on collateral values, daily MTM margin maintenance, the five-times exposure limit and Shah Investors’ ability to liquidate positions when clients fail to address margin calls.