Paytm Money, the wealth management division of Indian payments conglomerate Paytm on Monday said in a blogpost that it has received approval from capital market regulator Securities and Exchange Board of India (SEBI) to start its next offering — Stock Broking.
The company also said it had received the broker membership of exchanges BSE and National Stock Exchange.
The company is now gearing up to start the process of working with the stock exchanges to offer investing and trading products.
Paytm Money will introduce new offerings on its platform, including trading in equities and cash segments, derivatives, ETFs and other exchange traded products. However, it did not state a timeline for the launch of the same. Speaking on the approval, the company's blogpost said:
“With this, we are moving closer to becoming a full-stack wealth management platform as we had set out, and in line with our vision and mission to bring wealth creation opportunities to millions of Indians. Our efforts will continue towards providing our users the simplest, most transparent and best investment experience in India.”
In coming months, Paytm Money will also ramp up its engineering, product and design teams to ensure they offer a reliable investing platform that has the potential to cater to millions of Indians. The company also said it is setting up its teams for market operations in trade, settlement, depositories, risk, finance, treasury and others.
Paytm’s stock brokerage arm will to compete with discount broking firm Zerodha. In January, Bengaluru-based Zerodha had emerged as the biggest brokerage firm, according to data available with the NSE. As of December 2018, Zerodha had 8.47 lakh active clients, outpacing ICICI Securities’ and HDFC Securities.
In January, Paytm Money had said it has more than 1 million users on its platform. The wealth management division was launched in September 2018, and tied up with close to 25 asset management companies with $10 million in commitment for setting up operations from its parent One97 Communications Limited.
Last month, the company raised Rs 28.87 crore from parent One97 Communications Pvt Ltd.