India's leading payments giant Paytm is gearing up to bring its next offering on the table - Stock Broking.
The company has announced that its wealth management platform Paytm Money has received necessary regulatory approvals to serve as a stock-broker.
This means that you will soon be able to buy and sell shares right from the Paytm Money app.
Here are the details.
In a recent blog post, Paytm Money confirmed the receipt of necessary approvals from the Securities & Exchange Board of India - the prime regulator of our country's securities and capital market - for stock-broking.
Plus, the company also noted it has become a member of two main security exchanges of our country - the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
With the latest development, Paytm Money gears to transform into a full-fledged wealth management platform.
The service already offers mutual funds, and now it's being evolved to offer options for trading in equities & cash segments, derivatives, ETFs and more exchange-traded products.
Many details aren't yet clear but we expect Paytm Money's stock investment/trading features to work pretty much like its mutual fund offerings.
"With this, we are moving closer to becoming a full-stack wealth management platform as we had set out, and inline with our vision & mission to bring wealth creation opportunities to millions of Indians," Paytm said, noting it'll continue to transform investment experience in India.
Paytm says it is already ramping up its engineering and product teams to serve a reliable stock investment service in partnership with the two exchanges.
The company has also started hiring experts for its market operations in Trade, Settlement, Depositories, Risk, Finance, Treasury and other departments.
However, despite this progress, it still remains unclear when exactly Paytm Money's stock trading features would go live.
When launched, Paytm Money's share trading capabilities would go against online trading platform Zerodha.
The Bengaluru-based company dominates as one of the biggest players in the game with nearly 9 lakh customers.
It will be interesting to see how Paytm challenges Zerodha with its humongous user-base; the company currently boasts over 10 lakh Paytm Money users and 10 crore users on main Paytm app.
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