Indian stockbrokers say 0.02% MDR on capital markets threatens profits
Stockbrokers in India are raising concerns about a new 0.02% fee (MDR) on capital-market transactions involving securities, mutual funds, and brokers, set to kick in from October 15.
The fee is capped at ₹300 for bigger transfers.
They say this could make it tough for them to stay profitable, especially since many clients just park money in trading accounts without actually making trades.
Brokers ask SEBI, government to rethink
Brokers point out that they'll end up paying these fees even when no trades happen, and SEBI rules mean they have to return unused funds regularly, so the charges can pile up fast.
The BSE Brokers's Forum has asked SEBI to rethink this plan, and stockbrokers in India have asked the government to rethink this plan, saying capital markets aren't like regular shops and need a different approach.