Paytm Money is planning a full-scale launch of its retail stock broking service in six to eight weeks, newly appointed CEO Varun Sridhar told ET in an interview, marking the transition of the company into a retail broking platform.
The wealth management
subsidiary of Noida-based One97 Communications Ltd is currently operating in an “early-access” beta mode,
with the full set of features available only to about 80,000 Android-based
existing users on its platform.
Paytm Money, which till now
only allowed users to invest in Mutual Funds, is targeting
250,000 new active users over the next year hoping to hit daily volumes of
about 600,000 trades a day, said Sridhar.
“We are planning to democratise the money management space
for 300 million Indians,” said Sridhar, who recently replaced Pravin Jadhav who
resigned as CEO earlier this year.
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.
While Paytm Money has kept broking fees on longer term
investments at zero, intra-day trades would command a flat fee of 10 per trade,
which according to Sridhar is among the lowest in the industry.
“We are not targeting ultra-wealthy individuals; our focus is on providing a simple product for retail investors and traders who are looking for simple broking solutions,” he said.
The company faces stiff competition from the likes of Zerodha and Groww in the new age retail broking space and more established ICICI Securities and HDFC Securities in the portfolio management space. The full-scale launch of retail equity broking would not immediately be accompanied by commodity and derivative trading features.
Sandip Ginodia , CEO
ALTIUS INVESTECH PVT LTD
We deal in over 60 unlisted companies with 15 years of experience
For latest prices visit : www.abhisheksecurities.com/unlisted.htm / call : 09830271248 .
Email : ginodiasandip1@gmail.com
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