Mumbai, March 18: The Securities and Exchange Board of India (SEBI) has officially granted Paytm Money Limited, a subsidiary of One 97 Communications, a Certificate of Registration as a Research Analyst. This approval enables Paytm Money to offer SEBI-compliant investment insights, research reports, and data-driven analysis to investors.
With this certification, Paytm Money aims to expand its services in the investment ecosystem by providing expert-backed insights tailored for both retail and institutional investors. The newly acquired registration is expected to enhance the company’s research capabilities and integrate advisory features into the Paytm Money app, empowering users with informed financial decision-making tools.
This regulatory approval follows a recent case involving SEBI, in which Paytm Money paid a settlement amount of Rs 45.5 lakh. The case pertained to operational lapses, including missing documentation, failure to set alert limits, system connectivity issues, and the absence of a disaster recovery drill during the April to September 2023 period. The settlement was made without admission or denial of the allegations.
According to an exchange filing, the research and advisory services will soon be incorporated into the Paytm Money platform, allowing investors access to analytical tools and professional market insights. The initiative aligns with Paytm Money’s strategy to diversify its offerings within the financial services sector and provide seamless investment solutions.
The registration number for Paytm Money Limited as a Research Analyst, as per SEBI’s official records, is INH000020086.
The development comes at a time when India’s financial sector is witnessing a significant shift, with more households and retail investors exploring stock market investments. The increasing adoption of mobile-based trading platforms has fueled the demand for accessible and reliable investment research.
Meanwhile, Paytm Money has been actively enhancing its financial technology offerings. Earlier this month, the company introduced an automated payment deduction system called ‘UPI Trading Blocks.’ This system, built on NPCI’s UPI infrastructure, facilitates seamless equity trading by deducting funds from an investor’s bank account during trade execution without requiring a UPI PIN for each transaction. The new feature aims to provide greater transparency by ensuring that investor funds remain in their bank accounts until required for a trade.
The broader fintech landscape in India continues to evolve, with key players expanding their market presence. Competitor PhonePe is reportedly preparing for an initial public offering (IPO) with a valuation estimated at 25 times its sales for the financial year ending March 2024. This valuation is significantly higher compared to Paytm’s current sales multiple, marking an aggressive growth strategy in the industry.
With SEBI’s approval as a Research Analyst, Paytm Money is set to strengthen its position in the wealth management space, leveraging data-driven insights to serve its growing user base. The integration of advisory services into its platform is expected to enhance customer engagement and further solidify Paytm Money’s role as a trusted investment partner in India’s expanding financial sector.
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