Are brokers allowed to give free brokerage for signing up?

While scratching Reward cards in Google Pay, I came across one scratch card offering free brokerage for opening a Demat account -

Doesn’t this violate NSE’s Code of Advertisement? Specifically, the rule relating to the distribution of money -

The Stock Broker shall not involve/engage in games/leagues/schemes/competitions etc. which may involve distribution of prize monies/medals/gifts, etc.

Wouldn’t this lead to overtrading by the user and also artificially inflate the active customer metrics of the Trading Member?

Yeah, all of this is currently quite grey in terms of regulations. I guess if this got reported to the exchanges they will have an issue with it.


I too have this coupon in my GPay.
I said to it - Better luck next time! :smiley:

Yours is a good question…