Neutral impactCorporate Action
Brokerages seek MDR for capital market transactions to be limited to 2 basis points
BusinessLine 1 hr ago·17 Sept 2026, 4:20 pm
The Securities and Exchange Board of India (SEBI) is considering a proposal to cap the Miscellaneous Deduction Rate (MDR) for capital market transactions at 2 basis points. This would significantly lower the transaction cost for investors, replacing the current 20 basis points (0.2%) levy. The move aims to make trading more affordable and encourage participation in the stock market.
For investors, a lower MDR directly reduces the cost of buying and selling shares, which can improve overall returns. This is particularly beneficial for retail investors who trade smaller amounts, as the new structure would apply a 2% charge only on the portion of the transaction exceeding a ₹15 lakh threshold.
Investors should watch for the final SEBI circular and the effective date. The policy will likely be implemented in phases, so it is important to understand how the new rates will apply to your specific trading volumes and strategies.
Excerpt from BusinessLine
Discount brokerage firms including Groww, Zerodha, Angel One, Upstox and others have approached the Securities and Exchange Board of India (SEBI) seeking changes to the proposed framework for merchant discount rate (MDR) on UPI transactions according to sources privy to development. The brokers have proposed that MDR…Read the original at BusinessLine
Key takeaways
- Category: Corporate Action.
- Assessed as a significant, market-relevant update.
Why it matters
A meaningful update worth tracking. Use the price and stock snapshot to gauge how the market is responding.
