Paytm will introduce new product and offerings through its app to offer stock broking services
With this, users will be able to buy shares from by using Paytm Money
The services are set to go live within the next few months
Paytm’s wealth management vertical, Paytm Money is now planning on offering shares on its platforms after mutual funds. The online wallet company has now received a green signal from the Securities & Exchange Board of India (SEBI) to offer stock broking service to its users.
The subsidiary has received approval for its membership from Bombay Stock Exchange (BSE) & National Stock Exchange (NSE). With this, users will be able to buy shares by using Paytm Money.
According to the company, in order to offer stockbroking services, it plans to introduce new products and offerings through its app such as investing and trading in equities, derivatives, currency, commodities, ETFs and other exchange traded products.
The company also added that the products and services will hopefully go live within the next few months. It said that further updates on products, offerings, features, pricing and other details will be eventually revealed when the stock trading service goes live.
“With this approval, Paytm Money is moving towards its aim to be a full stack wealth management platform. Making investing in Stock Markets easier & accessible is in line with our mission to bring wealth creation opportunities to millions of Indians. We expect to go live within few months and eventually offer all exchange traded products to our users.” said Pravin Jadhav, director at Paytm Money.
Stockbroking services allow retail and institutional investors the opportunity to buy and sell equities.
Paytm Money was launched in September of last year, as a mutual funds platform. Through this subsidiary, Paytm sells mutual funds directly to consumers via a low-cost regular plan that eliminates the expense of distributor commissions.
Bengaluru-based Paytm Money, which is being led by Jadhav will and operates independently as a Paytm entity is focussed at building investments and wealth management products and services.
According to the company, it has already crossed over 1 Mn user mark within some months of its launch. Recently, Paytm Money integrated with Paytm bank to allow the users to make mutual funds investments on Paytm Payments Bank as well.
A report by industry body ICRA showed that the Indian broking industry revenue pool is expected to increase to reach INR 190 Bn in FY2018, registering a 15-20% y-o-y growth on the back of healthy volume growth coupled with rise in cash volumes.
Apart from Indian banks such as Kotak, ICICI, and HDFC, there are some of the online players offering stock broking services. One of the major players being Bengaluru-based Zerodha offers an online platform for brokerage-free equity investments, retail, institutional broking, currencies, and commodities trading.
Similarly, Pune-based Zambala which is an AI-powered marketplace which allows users to buy or sell stocks through its app.