Paytm Money’s BSE StAR Integration and related SEBI regulations10 min read
Last Date for completing your KYC and opening a Demat account was 15th November 2022. If you haven’t already done so, we will be making you a direct client of BSE. Check out this blog on what changes and what remains the same for you.
Thank you for being a valuable member of the Paytm Money family. It is because of your consistent, determined efforts towards growing your wealth every month that we have become one of the largest Direct Mutual Fund distribution platforms in the country.
Since its launch in 2018, Paytm Money has been the choice of 3 million Direct Mutual investors and has facilitated more than 60 million transactions till date. We are extremely grateful to these investors who appreciated our transparency and recognized our efforts in helping them gain 1% higher returns by investing in Direct Mutual Funds. The platform currently services retail users in close to 99% of pincodes across India.
Paytm Money is now in the process of integrating with BSE StAR, the largest Mutual Fund execution platform in the country. This integration is necessary for us to continue providing Direct Mutual Fund services to our investors under our 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.
In simple terms, all our Direct Mutual Fund investors are required to provide additional information as part of their KYC, and register themselves as broking clients with Paytm Money by opening a Demat account. A UCC (Unique Client Code) code will be generated post Demat account opening to facilitate Direct Mutual Fund transactions on BSE StAR. This process is necessary to ensure continuance of Direct Mutual Fund SIPs on the BSE StAR platform and stay compliant as per SEBI regulations.
To continue using Paytm Money app as before, Direct Mutual Fund investors have to just take a few simple steps to update their account
- Go to stocks profile section on Paytm money app
- Verify your details via Digilocker
- Submit a clear picture of your signature
- Take a selfie on the Paytm Money app as a part of your KYC
- Complete Aadhaar based e-signs to open a free Demat a/c
These steps have all been enabled through a 100% digital flow on the Paytm Money app and are completely FREE of cost for all Direct Mutual Fund investors.
Ensure compliance with SEBI Regulations by 15th November, 2022
Our integration with BSE StAR will have no impact on your existing Mutual Fund investments and you will be able to access the same on our platform, once you complete the SEBI requirements. There will not be any change in the way the units are held today, i.e. in a statement of account (SoA) form, and they will not be dematerialised. The Demat account opening is a mandatory step only as per regulatory requirements.
The last date to complete the mandatory steps on Paytm Money app was 15th November, 2022. If you haven’t already done so, we will be making you a direct client of BSE. Check out this blog on what changes and what remains the same for you.
Please note, if you are a Direct Mutual Fund investor on Paytm Money and have a Demat account with us, you will not be required to take the above mentioned steps.
Write to priority.kyc@paytmmoney.com for clarifications or any support anytime along the way.
Thank you for your continued support and we look forward to welcoming you on our new Direct Mutual Fund platform!
FAQs
Why do I need to update my KYC/ Upgrade my account?
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.
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 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.
What exactly do I need to do to stay compliant?
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 Demat account on Paytm Money by completing the e-sign process. We are providing the Demat account completely FREE of charge.
Details required:
- Go to stocks profile section on Paytm money app
- Verify your details via Digilocker
- Submit a clear picture of your signature
- Take a selfie on the Paytm Money app as a part of your KYC
- Complete Aadhaar based e-signs to open a free Demat a/c
The process is 100% digital and will not take more than a few minutes to complete. Click here to update your KYC
Is it mandatory?
Yes.
Direct Mutual Fund 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. 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.
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.
What’s in this for me?
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.
By when should I complete this process?
The last date to complete the mandatory steps on Paytm Money app was 15th November, 2022. If you haven’t already done so, we will be making you a direct client of BSE. Check out this blog on what changes and what remains the same for you.
In case you still want to complete your KYC and continue trading with Paytm Money, please complete your registration & open a free Demat account as a Broking client of Paytm Money Limited. It will take 7 days to activate your fresh investment once you are migrated to BSE StAR Mutual Fund platform as a Paytm Money user.
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.
Will I have to pay any charges associated with the Demat account?
Demat account opening is completely free and you will not be charged at any point during this process of account upgrade on Paytm Money. You will only be charged once you choose to add funds to your Demat account to place a trade. All the trading related charges detailed on this blog will only apply once you choose to trade from your Demat account.
You would even receive a welcome offer of Free Brokerage Credit up to ₹500 once you open your account.
How do I opt out of this process?
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. You will get a BSE StAR MF page link on your mobile number & email registered with RTA (CAMS & KFintech) after placing a redemption request on the Paytm Money app. You need to follow the process of authentication (via OTP) to complete the redemption process before the cut – off time of 3 PM. Alternatively, you can redeem units directly from RTAs (CAMS & KFintech) or respective AMC as per your convenience. We encourage you to complete these steps at the earliest as it’s 100% digital and is compeltely FREE of charge.
Steps:
1. We will notify you once BSE sends a link in 15 mins through which you can authenticate your redemption request.
2. Click on push notification and select the checkbox to authenticate your redemption request on the BSE page.
3. Complete the OTP verification process to place the redemption request successfully before the cutoff time of 3 PM. Video link
What will happen to my investments in case I don’t complete the steps?
To ensure the continuance of your investments, we will be making you a direct client of BSE due to regulatory constraints on accounts.
As a BSE client, you will be able to continue making fresh investments in your existing folios of Direct Mutual Funds on Paytm Money on our app, either via SIP or as lump sum. However, no investments in any new schemes of AMC will be permitted.
In case of redemptions, you will get a BSE StAR MF page link on your mobile number & email registered with RTA (CAMS & Fintech) after placing a redemption request on Paytm money app. You need to follow the process of authentication (via OTP) to complete the redemption process before the cut – off time. Alternatively, you can redeem units directly from RTAs (CAMS & KFintech) or respective AMC as per your convenience.
What if I want to initiate this process after 15th November, 2022?
Post 15th November, 2022 you will become a direct client of BSE due to regulatory constraints on accounts. Check out this blog on what changes and what remains the same for you.
However, once you complete your KYC formalities for the broking account after the due date, you will be moved back as a client of Paytm Money Limited within 7 working days after the said formalities are completed.
Once you’re back as a Paytm Money Limited client, you can access all the features and services of Paytm Money app.
Will I be able to continue investing in Direct Mutual Funds post this integration with BSE StAR?
Yes, we are integrating with the BSE StAR platform to continue scaling our Direct Mutual Fund services and provide your more schemes and features as a part of these offerings. There will be no impact on your existing Direct Mutual Fund investments on Paytm Money and you will be able to access the same on our new platform, once you complete the SEBI requirements. You will also have the option of choosing from more Direct Mutual Fund schemes.
Will my Direct Mutual Fund investments be in SOA or Demat form post integration?
Your Direct Mutual Fund investments will continue to be in SOA format on the BSE StAR platform. We require you to open a Demat account to generate an UCC to enable us to execute the transactions under our broking code, as per the SEBI requirement.
