Paytm Money Gets Approval For Stock Trading; Will This App Disrupt $2.3 Trillion Stock Market?
Paytm Money has crossed 1 crore users
Great news for all Paytm Money users: Securities & Exchange Board of India (SEBI) has allowed Paytm Money users to buy and sell stocks via their app.
What does this mean?
Can Paytm disrupt the $2.3 trillion stock market?
Paytm Money Gets Approval For Stock Trading
Securities & Exchange Board of India or SEBI has finally approved Paytm’s request for conducting stock market trading on their Paytm Money app.
With this approval, all users of Paytm Money can now buy and sell stocks, right from their app on the mobile. This is seen as a major disruption for the stock market.
Paytm Money already has the capability to offer mutual fund buying from its platform.
In a statement, Paytm said, “We will be introducing new capabilities & offerings on our platform, such as trading in equities & cash segments, derivatives, ETFs and exchange-traded products.”
In order to aid equity trading on their platform, Paytm has also inked a pact with Bombay Stock Exchange and the National Stock Exchange and finalizing “integrations with both exchanges and depository”.
Paytm has applied for a license to enable stock trading in October last year. The feature is not yet available, but it is expected that stock trading will be live by April end.
Stock Trading On Paytm Money: Is This A Disruption?
Paytm Money is Alibaba-backed Paytm’s financial services platform and was launched in September last year. It allows SIPs to start with Rs 100` and offers mutual funds from 25 leading mutual fund houses.
The platform already had 5 lakh users before the launch, even as Rs 100 crore cashback offer was announced. Within 4 months of its launch, more than 1 crore investors had joined Paytm Money, making it India’s largest mutual fund platform.
There is zero commission for investors who use Paytm Money for investing in mutual funds.
Although 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, only 0.9% of gross national disposable income went to stock market last year (RBI data).
Paytm’s entry into stock market trading is expected to encourage more investors into joining the stock market, and to make more equity trades.
Besides, Paytm is about to receive a new VC boost of $2 billion, which will make its valuation as $20 billion, making them the perfect platform to launch more fintech initiatives, going beyond stocks and mutual funds.
Will you use Paytm Money to buy and sell stocks? Do let us know by commenting right here!