Paytm Money, a business firm providing investment and financial management services, has now decided to stop accepting direct Mutual Fund investment orders from its investors. This condition will only revert if an investor has its Demat account opened with Paytm Money and has completed the KYC ( Know your customer) process. Meaning, that the investors having a Demat account opened with Paytm Money with KYC has done can place MF investing orders successfully.
When You Don’t opt For A Demat Account With Paytm Money Before July 25?
As per company norms if an investor fails to switch to a Demat account till July 25, then his or her future orders to invest in MFs including systematic investment plans (SIP) and redemption requests will not be accepted until the KYC is done.
Firm Switching To StAR Exchange Platform
Ceo of Paytm Money, Varun Sridhar asserted that they were executing direct MF orders and transactions through their technology platform with RIA (registered investment advisor) Code.
He added, “We are now migrating to the BSE StAR exchange platform and our transactions will use our booking code instead of RIA Code. To ensure continuity of investors’ saving plan, all investors are required to have a UCC (unique client code) as per SEBI regulations.”
So, the investors will need to complete their KYC and fill up the account opening form to get an active Demat account.
Further said, “We have waived all charges for this Demat account as long as clients are investing only in MFs. Further, the MF units will continue to be in the statement of account form and not in Demat form. Only if the investor transacts in equity they will be charged as per the current equity tariff.”
After notifying about the migration process, many investors have already completed the process of KYC and dreamt of account opening for the StAR exchange platform, said Varun.
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A Very Convenient Process
To switch to Demat accounts the Paytm Money users have to submit an image of their signature clicked with the black background (black paper) besides a photo, which will be clicked by the camera opened by the Paytm Money app.
Any process related to before MF investments for the users who have not switched to demands after the deadline of July 25 will be completed through the AMC (asset management company) website.
Through websites of AMCs, the investors who do not want to switch to demands can execute their fresh MF, SIP, and redemption-related transactions.