Business · India Bureau
SEBI to Review UPI Fee Concerns Raised by Stockbrokers
India's market regulator said it will examine complaints from stockbrokers regarding new UPI transaction fees set to take effect in mid-October. The fees will impose a merchant discount rate of 0.02% on capital market payments, capped at Rs 300 per transaction.
LSN India ·
The Securities and Exchange Board of India (SEBI) has indicated it will look into concerns raised by stockbrokers and market participants regarding the newly implemented UPI fee structure for financial transactions.
Under the revised framework taking effect from October 15, capital market transactions conducted through UPI—including payments to stockbrokers and dealers—will be subject to a merchant discount rate (MDR) of 0.02%. Individual transactions will be capped at Rs 300, ensuring that larger trades do not incur disproportionate fees.
The development comes as industry participants have expressed apprehension about the financial impact of the MDR on brokerage operations and retail investor engagement. Brokers have flagged concerns that the fee structure could affect transaction volumes and their business economics.
SEBI's willingness to examine the issue suggests the regulator is open to stakeholder feedback on the implementation of the new payment guidelines. The examination may potentially lead to adjustments or further clarifications on how the fees will be applied across different transaction types within the capital markets ecosystem.