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Paytm Money To Start Its Retail Stock Broking Services In September

By Staff
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Paytm Money, a subsidiary of One97 Communications Ltd (which also operates Paytm), will commence its retail stockbroking services in full-scale in six to eight weeks time, the newly appointed CEO Varun Sridhar told Economic Times in an interview.

Paytm Money To Start Its Retail Stock Broking Services In September
 

Currently, the wealth management arm of the Paytm brand is operating on "beta mode," wherein it has made available full set of "early access" services to about 80,000 Android-based existing users on its platform.

Paytm Money received permission from the Securities and Exchange Board of India (SEBI) in April 2019 to start its stockbroking business.

The full-scale launch of retail equity broking would not immediately be accompanied by commodity and derivative trading features.

As of now, it has allowed all of its users to only invest in mutual funds using its platform. According to the said interview, Paytm Money seeks to target 2.5 lakh new active users over the next year and hopes to hit daily volumes of about 600,000 trades a day.

Its new business model would involve a mix of commissions on intraday trades, interest income on loan against shares and subscription income from select services that will be launched over the next few months in a 60%-20%-20% mix, respectively, Sridhar explained to ET.

While broking fees on long term investments will be zero, Paytm Money would command a flat fee of 10 per trade on intraday trade, which Sridhar told ET, is the lowest in the industry.

Read more about: paytm stock broker
Story first published: Thursday, August 13, 2020, 9:07 [IST]
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