Borrowed money can fuel both gains and instability : Dr. Sumit Saurav

In a recent co-authored piece, ‘RBI’s timely move on margin trading’ for The Hindu BusinessLine, Dr. Sumit Saurav, Finance & Accounting area, explains how the rapid rise of margin trading can “improve liquidity… but it can also make the market more fragile”. The phenomenon has helped fuel India’s retail investing boom. But when investors buy shares with borrowed money, market gains and losses can both get amplified, he opines.