2-factor Authentication for Mutual Fund Purchases for BSE Direct Clients5 min read
As per BSE notice dated 09 Jan 2023, 2-Factor Authentication (2FA)shall be applicable for all types of Subscription transactions on BSE StAR MF platform with effect from April 1, 2023. So, to maintain regulatory compliance and ensure better security of your funds, you will be required to complete a 2-factor authentication (2FA) for purchasing Mutual Fund units.
As you were informed through our previous communications regarding the migration of our Direct Mutual Fund platform to BSE StAR, it was necessary for you to complete a few regulatory formalities to continue making fresh investments in Direct Mutual Funds and redemptions of the same on the Paytm Money platform. As the required formalities of completing your KYC and opening a Demat account were not completed, we made you a direct client of BSE. Read more about this migration here.
Starting 1st April 2023, the process of purchasing Mutual Fund units for you will be as follows:
Steps to purchase for BSE StAR MF Direct investors:
- Select an existing fund from your portfolio ▶️ Click on ‘Invest More’ ▶️ Enter the amount you want to invest along with SIP / Lump sum option. Click on ‘Proceed.’
- Your request to purchase is submitted to BSE.
- BSE StAR MF will send a link to your email address for 2-factor authentication.
- After authentication, BSE StAR MF will send a payment link to your email id/phone number. You have to make the payment using that link.
- BSE StAR MF will process your transaction.
However, you may complete your KYC process with Paytm Money app and open a free Demat account with us to enjoy a hassle-free experience. You can also invest in new funds once you complete the KYC.
Steps to purchase for Paytm Money’s KYC completed users:
- Select an existing or a new fund ▶️ Click on ‘Invest More’ ▶️ Enter the amount you want to invest along with SIP / Lump sum option. Click on ‘Proceed.’
- You will be prompted to do 2FA as we send OTP by email/phone number.
- Post 2FA, you can make the payment and track all the stages of the transaction on the Paytm Money app.
Completing KYC on Paytm Money is easy, paperless and completely digital. Your Demat Account will be completely FREE. You would even receive a welcome offer of Free Brokerage Credit up to ₹500 once you open your account.
Click here to update your KYC (https://pytm.my/opt_in)
If you need any support along the way, you can write to us at priority.kyc@paytmmoney.com
In case you need more information on this matter, you can check out this blog.
Frequently Asked Questions
1 What is the SEBI circular for Two Factor Authentication?
As per the SEBI’s notice, 2-Factor Authentication (2FA) shall be applicable for all types of SIP and lump sum purchase transactions with effect from April 1, 2023. So, to maintain regulatory compliance and ensure better security of their funds, all investors will be required to complete a 2-factor authentication for purchasing Mutual Fund units.
2. When is the Two Factor authentication circular coming into effect?
It will come into effect from April 1, 2023
3. How does Two Factor authentication impacts me?
You would be required to complete a 2-factor authentication (2FA) for purchasing Mutual Fund units – SIP and lump sum before 1st April 2023.
4. I made a payment in direct mutual fund but units are still not allotted, what should I do?
For SIP and lumpsum transactions, once the payment is done, the status will get updated on Day T+1 post 3 PM. Units allocation might take Day T+5 days.
5. When will my transactions on Paytm money app get updated?
SIP and Lumsum transaction:
1. Transaction will start reflecting immediately once you start the order
2. Payment status will get updated on Day T+1 day post 3 PM (Day T+2 to Day T+5 days in case of payment method as a one-time mandate)
3. Units will get allocated by Day T+5 days from the day of making the payment
SIP payment (Without auto-debit):
1. Transaction will start getting reflected on Day T+1 post 3 PM from the SIP day
2. Payment status will get updated on Day T+1 day post 3 PM from SIP date (Day T+2 to Day T+5 days from SIP date in case of payment method as a one-time mandate)
3. Units will get allocated by T+5 days from the day of making the payment
6. What if I have done two factor authentication but not made the payment for the mutual fund?
Your order will not be processed. You would have to make the payment to process your order.
7. By when can I validate my transaction by Two factor authentication (2FA) and pay?
The 2-Factor Authentication link will be valid till 11:59 PM of the day you started the transaction and the payment link is valid till 12:30 PM on T+1 for liquid funds and 2 PM on T+1 for non-liquid funds. If you have missed these timings, your transaction will be cancelled and you would need to start a fresh transaction.
8. What if I am not able to approve my transaction till 3 PM?
The 2-Factor Authentication link will be valid till 11:59 PM of the day you started the transaction and the payment link is valid till 12:30 PM on T+1 for liquid funds and 2 PM on T+1 for non-liquid funds. If you have missed these timings, your transaction will be cancelled and you would need to start a fresh transaction.
9. I did not receive the email to validate my transaction what should I do now?
You will receive email from BSE StAR MF (Subject of email: PURCHASE Authentication : BSE StAR MF), you can also check your spam folder. If case you haven’t received anything, please reach out to us at wecare@paytmmoney.com
10. I did not receive the email to make payment for my transaction what should I do now?
You will receive email from BSE StAR MF (Subject of email: Mutual Fund Order Payment Confirmation Link), you can also check your spam folder. If case you haven’t received anything, please reach out to us at wecare@paytmmoney.com
