Paytm Money today announced that it has extended the timeline for its direct mutual fund users to update their KYC and open a Demat account by 31st October. The fintech had earlier asked customers to open a demat account by 25th July as part of the platform’s shift to the BSE StAR platform.
“The backend technology integration with BSE StAR provides multiple advantages to our retail investors, and as per regulatory requirements, investors need to open a demat account and generate a UCC on our platform. The Demat account will remain free for life for investments in direct mutual funds,” said Paytm Money CEO Varun Sridhar.
In a statement, Paytm Money said it continues to offer direct mutual funds on the Paytm Money app, with no change in investor experience even after integration with BSE StAR.
Investors will continue to hold their direct MF investments in SoA format with Demat account opening as a mandatory step only as per regulations, it said.
Further to the discontinuation of its advisory services in April 2021, Paytm Money has now decided to offer only execution services for Direct Mutual Funds using the stock broking code from July 2022.
The technology backend shift from an RIA code to StockBroker code on BSE StAR requires the creation of a UCC (Unique Client Code), and the UCC regulations of SEBI require users to mandatorily have a Demat account.
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