Brokers feel the pinch of MDR calls for rethink

The new 0.02% MDR on UPI payments for investing in stocks and mutual funds is unlikely to hurt long-term investors or SIP flows, but analysts and industry players see some pressure building for brokers as active traders make frequent UPI pay-ins and some brokers have called for a rethink on the same saying their margins don’t allow them to take more hit on their already wafer-thin margins.

The development has had most listed broking firms falling on Wednesday; led by Groww (Billionbrains Garage Ventures) plunging close to 5% primarily because there was a block deals `2,000 crore at a discount on Wednesday. Angel One and Motilal Oswal both closed 1.5% down, and Geojit Financial was down 0.5%.