Paytm has confirmed that its investments arm, Paytm Money, had received approval from the Securities & Exchange Board of India (SEBI) to start stock broking, along with memberships to Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Paytm Money currently offers only mutual fund investments, for which it has partnered with 25 asset management companies. Separately, Paytm also sells insurance through its two entities Paytm Life Insurance Ltd and Paytm General Insurance Corporation Ltd. The approval had been reported by the Economic Times last month.
Following this development, Paytm will introduce trading in equities and cash segments, derivatives, ETFs and more exchange traded products. The company will begin integrating with both exchanges; ramp up its engineering, product and design teams; and set up new teams for market operations in trade, settlement, depositories, risk, finance, treasury and other areas, it said.
Paytm Money was set up last January to offer investment and wealth management products to customers of Paytm Payments Bank.
Flipkart-backed PhonePe, Paytm’s main competitor, entered the financial services sector with PhonePe Wealth Services in January this year, staring with selling mutual funds through its app, the Times of India reported.
On March 6, ET reported that Paytm Money had raised Rs 28.8 crore from parent One97 Communications. Paytm Money also increased its authorised capital to Rs 200 crore.