New Delhi, Sept. 17 -- Brokers worried about the new fee on UPI payments have moved the stock market regulator, fearing a body blow to discount brokers operating on wafer-thin margins to serve a growing retail user base. The 0.02% fee on UPI transactions above Rs.2,000 for the stock market takes effect on 15 October.

The BSE Brokers' Forum (BBF) informed the Securities and Exchange Board of India (Sebi) that merchant discount rate (MDR) on each UPI fund transfer made by clients to their brokers' designated client bank accounts would be many times the brokerage earned, a person aware of the matter said. It also stated that the broker was merely a pass-through entity, and that a client's money for a trade has to be mandatorily sent (upstre...