Paytm gets SEBI's nod to offer financial advice, shares surge
What's the story
Paytm Money, a subsidiary of One97 Communications, has been approved by the Securities and Exchange Board of India(SEBI) to function as a research analyst. The development was revealed by Paytm through an exchange filing. The approval enables Paytm Money to offer SEBI-compliant research services including investment insights, data-driven analysis, and research reports. Following the news, One97 Communications's shares surged by 7.6% in today's session, closing at ₹741.
Service integration
New services to enhance user experience
The newly approved research services will be integrated into the Paytm Money app as part of a research and advisory offering. The company said in its filing that this move is in line with Paytm Money's goal to expand its offerings in the investment ecosystem. It also aims to enhance user experience and provide expert-backed insights for retail and institutional investors.
Regulatory challenges
Paytm reassures users amid regulatory scrutiny
This announcement comes as Paytm is under regulatory scanner. The company recently revealed it had received a ₹611.17 crore show-cause notice from the Enforcement Directorate (ED) for alleged FEMA violations. Responding to the allegations, Paytm had reassured its users that "there has been no impact of the matter on Paytm's services to its consumers and merchants" and "all of its services are fully operational and secure."
Innovative feature
Paytm introduces 'UPI trading blocks' for seamless trading
Earlier this month, Paytm launched 'UPI Trading Blocks,' a feature for automatic payment deduction from bank accounts for trading on equity broking apps. It works on NPCI's UPI infrastructure and deducts funds at the time of trade execution without prompting users to enter a UPI PIN every time. The company stressed that "once the trade is completed, users can track and manage their funds through the Paytm app."