Sebi to hear brokers’ concerns over UPI MDR charges and trading account transfers

Capital markets regulator Sebi will examine concerns raised by brokers over the new UPI merchant discount rate (MDR) framework, particularly the potential cost burden on broking firms when clients transfer money into their trading accounts but do not execute transactions.

The UPI MDR regime, which comes into effect from October 15, will levy a 0.4 per cent charge on specified person-to-merchant transactions above ₹2,000. For capital-market transactions, including payments to mutual funds and brokers, the MDR has been fixed at 0.02 per cent, subject to a cap of ₹300 per transaction.