Indian stock brokers fuel $33 billion debt binge via commercial papers

Stock brokers accounted for roughly 21% of commercial paper issuances in India this year, raising about 3.2 trillion rupees ($33 billion) to fund margin trading.

The value of leveraged equity positions approached a record 1.6 trillion rupees by September 30, driven by growing investor demand despite market declines.

Commercial paper remains dominant due to its lower cost compared to broker margin loan rates ranging from 9% to 20%, even as RBI restrictions and regulatory proposals shift borrowing options.