Paytm Money gets SEBI's approval to operate as a research analyst (RA)

Paytm, the digital payments and financial services platform owned by One 97 Communications Ltd., announced in an exchange filing that its wealth management arm, Paytm Money, has received approval from the Securities and Exchange Board of India (SEBI) to operate as a registered Research Analyst (RA).

This means Paytm Money can now provide SEBI-compliant research services, including investment insights, research reports, and data-driven analysis.

The company said these new research and advisory services will be integrated into the Paytm Money app, aiming to give users better investment guidance. The registration number for Paytm Money Limited as a Research Analyst is INH000020086.

Expanding services in the investment ecosystem

Paytm added in a statement that this step aligns with its goal of expanding services in the investment ecosystem, improving user experience, and offering expert-backed insights for both retail and institutional investors.

The Noida-based company has been increasing its focus on the wealth management sector, where it competes with other brokerage platforms such as Kamath brothers-led Zerodha, Groww, and VC-funded Upstox.

Notably, Paytm Money is already a SEBI-registered stock broker and a depository participant, and it plans to use these new research capabilities to enhance decision-making tools for people looking to invest. In addition to the research license, the company recently introduced an automated payment process for equity trading called UPI Trading Blocks. 

This feature, which uses the National Payments Corporation of India's UPI infrastructure, allows funds to be deducted from a user's bank account at the time of trade execution without requiring the user to enter a UPI PIN each time. Paytm said this arrangement is more transparent, as the money stays in the investor's bank account until a trade is executed.