Dear Valuable Referral Clients,
Greetings from Alice Blue!!
As many of you know, referrals have always been a cornerstone of our client acquisition strategy. They help us grow and empower our clients to benefit by introducing others to our services. However, the recent exchange circular, NSE/COMP/63425, dated August 14, 2024, prohibits the sharing of brokerage income for client referrals to prevent trade inducement. We have discontinued sharing brokerage revenue for referrals to comply with this directive, effective August 31, 2024. However, all referral commissions generated up to August 31, 2024, will still be paid out.
To protect investors’ interests, it has been clarified that anyone referring a client to a Trading Member (broker) must be appointed as an Authorized Person (AP) of the Trading Member, with specific prior approval from the stock exchange for each individual. The Exchange believes that brokers sharing a portion of brokerage income as a referral benefit to clients could result in individuals encouraging their referrals to trade, which may not be in the customer’s best interest.
Further, we are actively exploring alternative ways to maintain the strength of our referral program while remaining compliant with regulatory requirements. We want to assure you that our dedication to our clients and our growth remains unwavering, and we will navigate this challenge together.
Thank you for your understanding and continued support.
Best regards,
Team Alice Blue
