“Paytm Money since inception in 2018 has been executing direct mutual fund transactions for lakhs of retail investors with our RIA code and using our own technology platform. We are migrating to the BSE StAR exchange platform and our transactions will use our broking code instead of RIA Code,” said Varun Sridhar – CEO – Paytm Money.
The fintech had sent an email to customers asking them to comply with the Know Your Customer (KYC) norms as part of the platform’s shift to BSE star. This shift entails users getting a unique client code (UCC) and a demat account.
What would you need to do?
If you are an investor on Paytm money, you need to have, as per regulations, a UCC code. Consequently, investors are also required to update their KYC and complete account opening form for a Demat account. Paytm Money has waived all charges and fees for this Demat account as long as clients are investing only in mutual funds, the company said. Further, the MF units will continue to be in statement of account (SoA) form and not in Demat form.
“We need you to take a few minutes to provide us with additional details to what you have already submitted while completing your initial KYC journey with us. Like –
1. A clear image of your signature
2. A live photo via Paytm Money app
Direct Mutual Funds, including SIPs, will be stopped in case you fail to complete the additional steps,” the note sent to investors read.
“Only if the investor transacts in equity they will be charged as per the current equity tariff which anyways is very competitive. Post launch of the migration process, many clients have already completed their demat account opening and KYC to the BSE StAR MF platform. 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 compared to Regular mutual funds,” said Varun Sridhar.