Why Zerodha has ended its 60 days challenge?

Zerodha as discount broker started with 60-day challenge and referral bonus for on addition of new client. These two offers were the main attraction for zerodha to get new business, why zerodha have stopped this?

Zerodha has ended its 60 days challenge payout from 25th April 2018 as well as 10% referral bonus scheme also. Now in 60 days challenge investor will not get money back, they will get the only certificate of achievement.

As per zerodha, they are providing free delivery trading and most of the traders do only equity trade, so there is no referral associated with such trades. In such case to avoid extra account and giving a free access to paid service can enhance user experience as well as the future growth of the company.

The reason which can be possible due to SEBI guideline, broker can't do such payout as an incentive to retail investors. Brokers are allowed to pay such incentive to its customer if they are registered with the exchange as AP. In such case, Zerodha has to make each individual as AP which is not possible.

But if this is the case then this guideline is for all other brokers also like Samco, UpStocks, Traderji, Tradeplus who are sharing 10% of referral bonus with their clients via referral program.

What is Zerodha New Referral Program?

Zerodha has the promise to compensate this via giving one-month free access to its paid service, which includes coin, Screener, Streak and Sensibull. For referring one client, the user can choose one-month free access to any of above services with Zerodha.

Not clear what can be the main reason, but this is a usual corporate style where they will give an incentive in the initial phase to make their brand name, once they are established in the market, they will start looking for cost-cutting. In one way this looks like cost cutting planning as well as promoting other paid service to the client, but not in favor of its existing clients who were loyal to the growth of Zerodha.