SEBI Restricts MIIs from Offering Volume Based Discounts to Brokers

SEBI has mandated that market infrastructure institutions (MIIs) cease offering discounts based on trading volumes to their members, effective October 1, 2024. This decision, outlined in a recent circular, aims to standardize charges across all MIIs uniformly.

MIIs, including platforms like Zerodha, Groww, and Upstox, must now implement a consistent charge structure for all members, eliminating tiered pricing dependent on trading activity.

The regulatory move ensures transparency and prevents potential discrepancies where charges collected from end-users exceed those paid to MIIs by brokers. This initiative seeks to uphold fair practices in the financial markets, safeguarding investor interests.