SEBI concluded that broker reimbursement schemes are activities that promote gaming and speculation in the securities market.
However, some brokers have started to use this method of giving clients extra privileges based on their trading activity.
Increased client privileges come with more trading.
If clients speculate more, they are rewarded with new privileges.
Additional benefits include getting upgraded to “super trader” status or analysis platform membership fee reduction off the total brokerage fees charged for the month, etc.
Do you think this is even legal?