“The last day to complete the requirements on Paytm Money App is July 25, 2022. If you are unable to comply with SEBI laws by July, future investments in Direct Mutual Funds including SIPs will be stopped as per the mandated rules of our company. 25, 2022,” said Paytm Money.
This can be easily done by uploading a clear image of the signature on the white paper and clicking on a live photo through the Paytm Money app, the email communication said.
According to the mail sent to Paytm Money investors, “As per these SEBI regulations, investors on BSE Star platform are required to register with us as a broking client by opening a demat account to continue investing in SIPs on our platform. In addition to what you have provided as part of your initial KYC, we will require certain details from you and submit them to the exchanges to upgrade your account for us to continue compliance.
Here’s a look at important information regarding KYC completion, what happens if you don’t do it by the deadline, and more.
Why do I need to update my KYC / upgrade my account?
Money was offering direct mutual fund execution and advisory services as per SEBI regulations, where these services could be offered by the RIA or the broker using the exchange platform. Following the change in regulation, we have decided to discontinue offering advisory services and will have to stop using RIA codes and compulsorily use our broking codes to execute direct mutual fund transactions. We are in the process of integrating with BSE Star, the country’s largest mutual fund execution platform, to continue to provide direct mutual fund services to our investors and remain compliant.
BSE Star being an exchange platform requires UCC (Unique Client Code) to facilitate direct mutual fund transactions by mapping clients and exchanges. SEBI requires that these UCCs be mapped only in demat accounts.
As per these SEBI regulations, investors on the BSE Star platform are required to register with us as a broking client by opening a demat account to continue investing in SIPs. In addition to what you have provided as part of your initial KYC on our Platform, we will require certain details from you and submit them to exchanges in order for us to upgrade your account in order to continue compliance.
For your convenience, the entire process has been simplified and is 100% digital on Paytm Money App. It is absolutely free of any charges. We assure you that it will not take more than a few minutes to complete.
As we take the next big step in enhancing and enhancing the Direct Mutual Fund experience for our investors, we are in the process of integration with BSE Star – the largest mutual fund execution platform in the country.
What do you need to do to remain obedient?
In order to continue to comply with SEBI regulations on Paytm Money and be able to invest in your SIP in future, you will need to provide certain details in addition to the details already submitted while completing your initial KYC with us and a free Need to open Demat account.
- Upload clear image of your signature on white paper
- Click on Live Photo through Paytm Money App
The process is 100% digital and will not take more than a few minutes to complete. Click here to get started.
Is it mandatory?
Yes. BSE Star being an exchange platform requires UCC (Unique Client Code) to facilitate direct mutual fund transactions by mapping clients and exchanges. SEBI requires that these UCCs be mapped only in demat accounts.
As per these SEBI regulations, investors on the BSE Star platform are required to register with us as a broking client by opening a demat account to continue investing in SIPs.
What’s in it for me?
On completion of this integration, you will have access to a lot more Direct Mutual Fund schemes, advanced features and a whole new Direct Mutual Fund experience on the Paytm Money app. The BSE Star platform has been enhanced over the years to handle high volume transactions and currently processes around 20 million transactions per month and is growing.
When should I complete this process?
The last date to complete the mandatory steps on Paytm Money App is July 25, 2022. In the event of failure to comply with SEBI regulations by July 25, 2022, future investments in direct mutual funds, including SIPs, will be put on hold. Our Mandatory Guidelines.
This will only take a few minutes, we encourage you to act immediately. Click on this link to get started.
Will I be charged for Demat account?
No way. Account opening is completely free and you will not be charged at any point of time during this account upgrade process. You will only be charged when you choose to add funds to your Demat account for trading. You can see all the fees related to trading on this blog.
How do I exit this process?
Since the integration process has no impact on your current direct mutual fund investments, we urge you to avoid losing your hard earned financial growth by investing every month.
If you still prefer to opt out, you can place a redemption request for your investment on our Platform, which will be processed within 3 trading days. Alternatively, you can redeem it directly from AMC or RTA.
What happens to my investment if I don’t complete the steps?
In case you fail to update your KYC by July 25, 2022, future investments in direct mutual funds including SIPs and redemptions will be stopped. You will still be able to access your portfolio and see the status of your investments so far. Any further action on your past investments should be initiated by you on the website of the concerned AMC.
What if I want to start this process after July 25, 2022?
You can also choose to initiate this regulatory process after July 25, 2022, but until you do so, your SIP will be put on hold and any other activity on redemption such as your existing investments on the Paytm Money platform will be prohibited. We encourage you to complete this process before July 25, 2022, so that you do not miss the growth streak you have achieved with your investments so far.