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regular-article-logo Saturday, 22 June 2024

At Rs 376, Paytm shares hit upper circuit for third straight session

According to reports, the Directorate of Enforcement (ED), which has been probing One97 Communications' arm Paytm Payments Bank, has not found any breaches of the foreign exchange rules so far

PTI New Delhi Published 20.02.24, 01:05 PM
Representational image.

Representational image. File

Shares of Paytm's parent firm One97 Communications rallied 5 per cent and touched upper circuit for the third straight session on Tuesday.

According to reports, the Directorate of Enforcement (ED), which has been probing One97 Communications' arm Paytm Payments Bank Ltd (PPBL), has not found any breaches of the foreign exchange rules so far.

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However, the reports said, the central agency has found certain lapses in know-your-customer (KYC) norms as well as issues around generation of suspicious transaction report.

Last week, ED had formally initiated a probe into overseas transactions by PPBL for allegedly flouting foreign exchange rules.

The scrip of crisis-hit fintech company surged 5 per cent each to Rs 376.45 and Rs 376.25 apiece -- its upper circuit limit -- on the BSE and NSE.

The 30-share BSE Sensex benchmark gained 37.98 points or 0.05 per cent to 72,746.14, while NSE Nifty rose 3.05 points to 22,110.60. On Monday, shares of One97 communications jumped 5 per cent, hitting its upper circuit, after the company announced its collaboration with Axis Bank for the continuation of merchant settlements.

The move will allow continuity of Paytm QR, soundbox and card machine after the March 15 deadline set by the Reserve Bank of India (RBI) for shutting down operations of Paytm Payments Bank.

On Friday, shares of Paytm rose 5 per cent, rebounding after three days of fall amid the company coming under the regulatory scanner for various violations related to its payments bank business.

One97 Communication stock has taken a beating on the exchanges this month after the RBI action.

As per the January 31 order, the RBI asked PPBL to stop further deposits, credit transactions, or top-ups in any customer accounts, prepaid instruments, wallets, FASTags, and National Common Mobility Cards, after February 29. The RBI later extended the deadline till March 15.

One97 Communications holds a 49 per cent stake in PPBL but classifies it as an associate of the company and not as a subsidiary.

Except for the headline, this story has not been edited by The Telegraph Online staff and has been published from a syndicated feed.

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