Paytm Money Limited (PML) has extended the timeline for its Direct Mutual Fund users to update their KYC & open a Demat Account by 31st October, 2022. The company has integrated with BSE StAR MF platform, the largest execution platform in the country, to offer Direct Mutual Funds under its stock broking code.
Earlier, Paytm Money was offering Direct Mutual Fund execution and advisory services on its in-house technology platform under an RIA code, in accordance with SEBI regulations.Further to discontinuation of its advisory services in April 2021, Paytm Money has now
decided to offer only execution services for Direct Mutual Funds using stock broking code from July 2022.
The technology backend shift from a RIA code to StockBroker code on BSE StAR requires creation of a UCC (Unique Client Code) and the UCC regulations of SEBI require users to mandatorily have a demat account.
With the integration, there will be no change in user experience and they can continue to
enjoy uninterrupted access to the features and services of the Paytm Money app.
Here are a few simple, 100% digital steps Direct Mutual Fund investors have to take to
update their accounts:
- Submit a clear picture of their signature
- Click a live photo on the Paytm Money app as a part of their KYC
- Complete e-sign to open a free Demat a/c Here are some insights for retail investors about Direct Mutual Fund investments through the app applicable post integration with BSE StAR:
- Paytm Money is the leading distributor of Direct Mutual Funds in India. The platform will continue to distribute Direct Mutual Funds after BSE StAR integration.
- Units held in a statement of account (SOA) form will remain so. They will not be moved to the Demat account.
- The Demat account will be free for life for Direct Mutual Fund investors, until they take the decision to start equity investing in which case, equity tariffs will apply.
- Existing SIPs will be processed as they are now, without any changes and investors will continue to view their investments in the app.
- Investors won’t have to redeem or take any action on their existing portfolio; the integration will be handled completely by BSE StAR and Paytm Money team.
- Existing investors who are already investing in Equities through Paytm Money Demat account do not need to take any action as their UCC has already been created and the same can be used for Direct Mutual investments.
Varun Sridhar, CEO – Paytm Money Limited said “We started with Direct Mutual Funds in India in a simple, zero cost & transparent manner and are now getting ready to bring an
exciting new Direct Mutual Fund experience. The backend technology integration with BSE
StAR provides multiple advantages to our retail investors and as per regulatory requirements, investors need to open a Demat account and generate a UCC on our
platform. The Demat account will remain free for life for investments in Direct Mutual Funds. We are committed to our investors and respect their investment journey. Their savings plans & SIPs are important to us and hence, the three month extension will provide them with sufficient time to take the simple steps.”
Paytm Money users can read more on this blog or write to priority.kyc@paytmmoney.com
or call at 0120- 4786105 for any support