Paytm Money, the wealth management arm of Paytm, has announced it has received approval from the Securities and Exchange Board of India (SEBI) to start offering a stock broking service. The new move will enable Paytm Money to start offering features such as the ability to trade in equities and cash segments, derivatives, and exchange-traded funds (ETFs) among other exchange-traded products. This comes as an addition to the existing mutual funding offering that Paytm Money is offering since September last year.
Through a post on Medium, Paytm has revealed the approval from SEBI and announced the approval of Paytm Money's membership with BSE and NSE. All this is aimed to enable Paytm Money to soon start offering shares through its mobile app.
"With this, we are moving closer to becoming a full-stack wealth management platform as we had set out, and in line with our vision and mission to bring wealth creation opportunities to millions of Indians," the company said in the Medium post.
As a result of the new development, Paytm will start its integrations with both exchanges and depository to provide a list of investing and trading products through the Paytm Money app. The company has also noted in its blog post that it would ramp up with engineering, product, and design teams to meet the growing requirements. Furthermore, it is expanding its teams for market operations in the fields of trade, settlement, depositories, risk, finance, and treasury.
That being said, Paytm Money is yet to start providing stock investing and trading services.
Paytm Money debuted as a platform to offer mutual fund investments through its mobile app in September last year. Paytm announced during the launch of the new subsidiary that it was aiming to double the mutual fund investor base in India within the next three to five years.
To attract new investors, Paytm promoted the ability to invest in a lump sum or via SIPs with an as low amount as Rs. 100 in some of the available schemes. It also partnered with rating services such as MorningStar, CRISIL, and Value Research.
Disclosure: Paytm's parent company One97 is an investor in Gadgets 360.
