Zerodha Referral SEBI Programme

Zerodha referral program (discontinued)

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The Zerodha referral program historically allowed existing clients to earn a referral payment for each successful new account opened via their referral link. Following SEBI’s 2024 framework on broker referrals (related to the finfluencer ban ), the program was discontinued or significantly restructured.

Historical program

Pre-2024, Zerodha’s referral program worked roughly as follows:

FeatureDetail
Eligible referrerExisting Zerodha client
Eligible refereeNew customer opening a Zerodha account
CompensationA percentage of the new client’s brokerage (revenue share) or a fixed amount
DurationFirst year or life of the new account (varied)
TrackingVia personal referral link on Console

Many existing clients earned modest referral income over years; some influencer-style users (and external finfluencers) earned more significantly.

Why it was discontinued / restructured

SEBI’s 2024 framework (covered in Finfluencer SEBI ban impact on Zerodha referrals ) required:

  • No broker referrals to unregistered finfluencers.
  • Brokers must vet referral partners.
  • General-purpose content creators cannot earn referrals without SEBI registration.

To comply, Zerodha:

  • Restricted referrals to verified channels only.
  • Tightened the eligibility for referrer-style earning.
  • Restructured the program (some clients describe this as “discontinued”).

Current status

As of 2026:

  • Personal client-to-friend referrals: Generally still allowed (limited).
  • Influencer / content-creator referrals: Require SEBI registration.
  • Public marketing campaigns: Done by Zerodha directly without third-party referrers.

For specific current details: Check the Zerodha referral page (link may exist or 404 depending on status).

What existing referrers receive

  • Active referral payments: May continue for existing referral relationships (subject to SEBI’s transition framework).
  • New referrals: Restricted per the new framework.
  • Discontinued payments: Some referrers reported reduced or stopped payments as the framework took effect.

Individual circumstances vary; check your Console for specific referral status.

Tax treatment of referral income

Referral income (where it exists):

  • Treated as other income for tax purposes.
  • Subject to TDS at applicable rates.
  • Annual reconciliation via Form 16A or similar.

For complex tax situations involving substantial referral income (above thresholds), consult a Chartered Accountant before filing.

Alternative routes for content creators

For content creators wanting to engage with Zerodha:

  • SEBI RA registration: Allows publishing research with potential disclosed broker affiliation.
  • Zerodha’s open API community: Build tools without earning referrals; some indirect benefit.
  • Educational content: No SEBI registration needed for pure education; no referral income either.

Comparison with other brokers

Other Indian brokers (Angel One, ICICI Direct, Groww) have similar referral programs, all subject to the same SEBI 2024 framework:

  • General trend across the industry: tightened referral compliance.
  • Smaller brokers may still operate informally; SEBI enforcement is scaling.

Why it matters

For retail clients:

  • If you previously earned referral income, expect reduced or stopped payments.
  • New referral attempts may not generate income for you.
  • The cleaner compliance environment is better for the broader market even if individually less rewarding.

See also

External references

References

  1. SEBI, Broker referral and finfluencer framework, circulars 2023-2024.
  2. Zerodha, Referral program policy, zerodha.com.
  3. Industry communications on referral compliance, 2024-2025.

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The WebNotes Editorial Team covers Indian capital markets, payments infrastructure and retail investor procedures. Every article is fact-checked against primary sources, principally SEBI circulars and master directions, NPCI specifications and the official support documentation published by the intermediary in question. Drafts go through a second-pair-of-eyes review and a separate compliance read before publication, and revisions are tracked against the SEBI and NPCI rule changes referenced in the methodology section.

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WebNotes is independent. No relationship with any broker, registrar or bank named in this article.