2 Reasons Why Paytm’s Entry Into Equities Can Disrupt $2.3 Trillion Stock Market!
Paytm Money is expected to enter stock market very soon.
Paytm Wants To Enter $2.3 Trillion Stock Market – 2 Reasons Why This Is A Masterstroke!
As per latest information coming in, Paytm Money wants to enter the stock market in India, and very soon, they will write to National Stock Exchange, and Bombay Stock Exchange regarding this.
Can this step disrupt the $2.3 trillion stock market in India?
Paytm Money Wants You To Buy Stocks!
Paytm Money, which was recently launched, is primarily into mutual funds. They provide a platform wherein users can easily buy mutual funds after selecting the best ones.
Now, Paytm Money wants to expand their range of services to stock market as well.
Ashishkumar Chauhan, Chief executive officer at BSE has welcomed this step, as he said, “If they wish to apply for a broking license, we would be delighted to welcome them.”
Pravin Jadhav, whole-time director at Paytm Money has refused to comment on this.
Once Paytm Money decides to enter this segment, then users will be able to buy direct equities, commodities and derivatives.
2 Reasons Why Paytm Money’s Entry Will Disrupt The Industry
Livemint reports: “Paytm’s entry could potentially shake up the markets.”, and we strongly believe with this theory.
Reason #1: Numbers Are Aligning With Paytm!
Even before its launch, Paytm registered amazing numbers – 5 lakh mutual fund buyers were already present on Paytm Money, even before its launch.
Approximately 10 lakh users have already registered on Paytm Money, and every day, 10,000+ users are transacting on the platform to buy or sell mutual funds.
Meanwhile Paytm, India’s largest mobile wallet is now India’s most valued startup at $10 billion valuations and 30 crore registered users.
In the month of August, Paytm successfully transacted Rs 30,000 crore GMV, which is highest in India.
With a sound backup, and a community of hardcore digital users who are comfortable transacting online, Paytm and Paytm Money, both can help the stock market.
Reason #2: Stock Market Needs A Paytm Push
The sad truth is, Indians don’t invest in equities and stock market.
As of August 2018, there are 17.6 million depository accounts with the National Securities Depositories Ltd and 15.8 million depository accounts with the Central Depository Services (India) Ltd.
However, as per RBI’s data, only 0.9% of gross national disposable income went to the stock markets last year, compared to 0.2% in 2016-17.
Now, what’s stopping Indians from investing? Lack of information, lack of proper platform and lack of motivation seem to be primary reasons.
Paytm can change this situation. Infact, they can shake up the whole industry.
In the case of Paytm Money, there exist no distributor commissions, which means more profits for the investor. In case such a similar model is adopted for equities and derivatives, then it can change the game.
Nithin Kamath, CEO of Zerodha, which is India’s 2nd largest stock brokerage as per client numbers agrees with this line of thought. As per him, Paytm’s entry into stock brokerage can lead to several first-timers entering the market, which will eventually benefit the whole industry.
He said, “That is mainly because they already have a captive audience.”
Do you think Paytm’s entry into stock market can be beneficial? Do let us know by commenting right here!
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