Are brokers allowed to give free brokerage for signing up?

Brokers
1

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

Free_Brokerage
Free_Brokerage1080×1495 101 KB

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?

2

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.

3 Likes
3

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

4

Yours is a good question…