Paytm Money gets Sebi research analyst certification, shares surge

With the new SEBI certification, Paytm Money is authorized to provide comprehensive research services, enhancing user experience and empowering investors, aligning with its strategic vision to strengthen its role in India’s expanding wealth management sector

One97 Communications Ltd (OCL)-owned Paytm Money has secured a Certificate of Registration as a research analyst from the Securities and Exchange Board of India (Sebi). This move marks a significant milestone for the company, allowing it to legally provide research services, including market analysis and financial reports, to retail and institutional investors in compliance with SEBI’s guidelines.

In response to the announcement, Paytm's stock surged by 7.79%, closing at Rs 742.45 on the Bombay Stock Exchange (BSE) on Tuesday (March 18), reflecting investor optimism about the company’s future prospects.

With this new certification, Paytm Money is now authorized to offer comprehensive research services, aimed at enhancing user experience and empowering investors with expert insights. The registration number assigned to Paytm Money as a research analyst is INH000020086. This move aligns with the company's strategic vision to strengthen its role in India’s fast-growing wealth management sector, further diversifying its portfolio of services.

In a statement, Paytm Money emphasized that this new capability would be integrated seamlessly within its existing platform, enhancing its value proposition in the digital investment ecosystem. The company has been focusing on leveraging advanced technology to improve its offerings, including a recent collaboration with Perplexity AI. This partnership, announced in February, integrates artificial intelligence into the app, allowing users to explore financial topics in regional Indian languages and make informed investment decisions with AI-backed insights.

Regulatory challenges amid growth

However, Paytm’s growth has not been without controversy. In early March, the Enforcement Directorate (ED) issued a show-cause notice to the company regarding alleged violations of the Foreign Exchange Management Act (FEMA). The notice pertains to Paytm’s acquisition of two subsidiaries, Little Internet Pvt Ltd and Nearbuy India Pvt Ltd, with a combined transaction value exceeding Rs 611 crore. These developments have raised questions about Paytm's regulatory compliance, though the company has yet to issue an official response to the notice.

Despite these legal challenges, Paytm Money’s recent strides in enhancing its wealth management services position the company as a rising player in India's competitive fintech industry. The company continues to innovate with AI integrations and a growing suite of services aimed at reshaping the investment landscape for millions of Indian consumers.

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