Home / Companies / News /  Paytm Money extends deadline for KYC updates in mutual funds till 31 Oct

Paytm Money has extended the deadline for updating KYC and opening a Demat account by October 31, 2022, for direct mutual fund users. Also, the platform has integrated with the BSE StAR MF platform, the largest execution platform in the country, to offer Direct Mutual Funds under its stock broking code. Paytm Money is the leading distributor of direct Mutual Funds in the country. With the BSE integration, Paytm ensures that there will be no change in user experience and they can continue to enjoy uninterrupted access to the features and services of the Paytm Money app.

The platform said on Wednesday 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.

Earlier, Paytm Money was offering Direct Mutual Fund execution and advisory services on its in-house technology platform under an RIA code, following SEBI regulations. 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.

Varun Sridhar, CEO of Paytm Money Limited said “We started with Direct Mutual Funds in India in a simple, zero cost & transparent manner and are now getting ready to bring an exciting new Direct Mutual Fund experience. 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. We are committed to our investors and respect their investment journey. Their savings plans & SIPs are important to us and hence, the three-month extension will provide them with sufficient time to take the simple steps."

Here's how users can update their KYC in 3 simple steps:

- Submit a clear picture of their signature

-Click a live photo on the Paytm Money app as a part of their KYC

- Complete e-sign to open a free Demat account.

Notably, the Demat account will be free for life for Direct Mutual Fund investors, until they decide to start equity investing in which case, equity tariffs will apply. Meanwhile, existing SIPs will be processed as they are now, without any changes and investors will continue to view their investments in the app.

"Units held in a statement of account (SOA) form will remain so. They will not be moved to the Demat account," the platform said in its statement.

The integration will be handled completely by BSE StAR and the Paytm Money team, and thereby, investors do not need to redeem or take any action on their existing portfolios. Existing investors who are already investing in equities through the Paytm Money Demat account do not need to take any action as their UCC has already been created and the same can be used for Direct Mutual investments.

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