PremiumListen to this article |
A SEBI-registered online platform, Paytm Money Limited, offers services for mutual funds, initial public offerings, stocks, and NPS retirement funds. But in order to keep up with their mutual fund SIPs, Paytm Money has required investors to make their accounts KYC compliant. Paytm Money has set a deadline of July 25, 2022, to complete KYC. In order to continue complying with SEBI regulations on Paytm Money and to be able to invest in your SIPs in the future, you must provide a few details, including uploading a clear image of your signature on white paper and clicking a live photo via the Paytm Money app.
Paytm Money has said that “The last date to complete the mandatory steps on Paytm Money app is 25th July, 2022. In the event of your failing to comply with SEBI regulations by 25th July, 2022, future investments in Direct Mutual Funds, including SIPs, will be stopped as per our mandated guidelines."
Paytm Money has alerted its users through mail by saying that “As per these SEBI regulations, investors on the BSE StAR platform need to register with us as a broking client by opening a Demat account to continue investing in SIPs. We would require a couple of details from you in addition to what you provided as part of your initial KYC on our platform and we need to submit them to the exchanges to upgrade your account to continue being compliant. For your convenience, this entire process has been simplified and is 100% digital on the Paytm Money app. It is absolutely FREE of any charges. We assure you that it will not take more than a few minutes to complete it."
Here are the FAQs that Paytm Money has mentioned on its mail statement.
Paytm Money was offering Direct Mutual Fund execution and advisory services in accordance with SEBI regulations where these services could be offered by either an RIA or a broker using an exchange platform. Subsequent to a change in regulation, we decided to discontinue offering advisory services and have to stop using the RIA code and mandatorily use our broking code to execute Direct Mutual Fund transactions. We are in the process of integrating with BSE StAR, the largest Mutual Fund execution platform in the country, to continue providing Direct Mutual Fund services to our investors and stay compliant as per regulations.
BSE StAR being an exchange platform requires a UCC (Unique Client Code) to facilitate Direct Mutual Fund transactions by mapping a client and the exchanges. SEBI requires that these UCCs be mapped to only Demat accounts.
As per these SEBI regulations, investors on the BSE StAR platform need to register with us as a broking client by opening a Demat account to continue investing in SIPs. We would require a couple of details from you in addition to what you provided as part of your initial KYC on our platform and we need to submit them to the exchanges to upgrade your account to continue being compliant.
For your convenience, this entire process has been simplified and is 100% digital on the Paytm Money app. It is absolutely FREE of any charges. We assure you that it will not take more than a few minutes to complete it.
As we take the next big step in scaling and enhancing the Direct Mutual Fund experience for our investors, we are in the process of integrating with BSE StAR - the largest Mutual Fund execution platform in the country.
To continue being compliant with SEBI regulations on Paytm Money and to be able to invest in your SIPs in the future, you need to provide a couple of details in addition to what you have already submitted while completing your initial KYC with us and open a FREE Demat account.
a. Upload a clear image of your signature on white paper
b. Click a live photo via Paytm Money app
The process is 100% digital and will not take more than a few minutes to complete.
Yes. BSE StAR being an exchange platform requires a UCC (Unique Client Code) to facilitate Direct Mutual Fund transactions by mapping a client and the exchanges. SEBI requires that these UCCs be mapped to only Demat accounts. As per these SEBI regulations, investors on the BSE StAR platform need to register with us as a broking client by opening a Demat account to continue investing in SIPs.
On completion of this integration, you will have access to a lot more Direct Mutual Fund schemes, enhanced features and whole new Direct Mutual Fund experience on the Paytm Money app. The BSE StAR platform has been scaled over the years to handle transactions of high volumes and currently processes close to 2 Cr transactions per month and growing.
The last date to complete the mandatory steps on Paytm Money app is 25th July, 2022. In the event of your failing to comply with SEBI regulations by 25th July, 2022, future investments in Direct Mutual Funds, including SIPs, will be stopped as per our mandated guidelines. It will just take a couple of minutes, we encourage you to take action right away.
Absolutely not. The account opening is completely free and you will not be charged at any point during this process of account upgrade. You will only be charged once you choose to add funds to your Demat account to place a trade. You can view all the trading related charges on this blog.
As the integration process has no impact on your current Direct Mutual Fund investments, we urge you not to lose out on the financial growth that you have achieved with your diligence by investing every month.
In case you would still prefer to opt out, you can place a redemption request for your investments on our platform, which will be processed in 3 trading days. Alternatively, you can redeem the same from AMC or RTA directly.
In the event of your failing to update your KYC by 25th July, 2022, future investments in Direct Mutual Funds, including SIPs & redemption, will be stopped. You will still be able to access your portfolio and view the status of your investments till date. Any further action on your past investments would have to be initiated on the respective AMC's website by you.
You can choose to initiate this regulatory process post 25th July, 2022 as well but till the time you do so, your SIP's will be stopped and any other activity on your existing investments like redemption will be restricted on Paytm Money platform. We encourage you to complete this process before 25th July, 2022, to not miss out on the growth streak that you have achieved with your investments so far.