What about Paytm Money Now?

Yeah it's totally safe. You're not investing into Paytm. You're simply using Paytm services to invest into something else. The recent RBI circular has nothing to do with your investments done using Paytm money

All these securities are maintained in your dematerialize account with nsdl/cdsl. Paytm is just a facilitator of the transaction i.e. broker. Until they do some big fraud like karvy did, your securities should be safe. Again all financial instruments are based on trust and if I was at your place might have moved my demate account to some trustworthy broker.