Rejection from a legitimate journal, with reviewers recommending me to try a Beall's list journal
I am quite new to academia, is the above considered normal practice


No. This is abnormal and unacceptable for a reviewer or editor to suggest this.


  Any advice of what I can do?


If the journal you submitted to really is legitimate, contact the editor and escalate this. Simply point out that the review you received pointed you to a predatory journal, and ask if the editor can reach out to the reviewer to see if this was a mistake.


  Update: I found that a member of the editorial board of the SCIE journal, is also in the editorial board of the Beall's list journal.


This is a red flag, and the review you received is another red flag. These red flags suggest that the journal you submitted to is not reputable. I would check with online journal ratings, impact factor, etc. to make sure you are not already submitting to a very low-quality journal (even if it is not predatory).