In response to the Reserve Bank of India’s (RBI) restrictions on Paytm Payments Bank, the circuit filter for One 97 Communications Ltd, commonly known as Paytm, has been adjusted downward to 5%, down from the previous 10%. This decision follows a prior reduction from 20% to 10% due to heightened volatility in Paytm shares. As of 9:29 am, Paytm’s stock was trading 3.31% lower at Rs 331.00 on the BSE.
The recent revision in the circuit limit comes after a day when Paytm shares hit their 10% lower circuit limit. The new price band adjustments are effective from February 15, 2024, as confirmed by the Bombay Stock Exchange (BSE). Paytm’s stock had closed 10% lower at Rs 342.35 on the previous trading day, marking a 55% decrease in market value since January 31, coinciding with the imposition of strict RBI restrictions on Paytm Payments Bank.
Several other stocks, including Euphoria Infotech (India) Ltd, Jubilant Industries Ltd, Samrat Forgings Ltd, Pee Cee Cosma Sope Ltd, Genus Power Infrastructures Ltd, Satchmo Holdings Ltd, Seasons Textiles Ltd, and Benara Bearings and Pistons Ltd, also saw revisions in their price bands by BSE.
In response to mounting concerns, Paytm issued a clarification to stock exchanges. The fintech giant, along with its subsidiaries and associate, Paytm Payments Bank Limited, disclosed that it has been receiving notices and requests for information from authorities, including the Enforcement Directorate (ED), regarding customers engaging in business with these entities.
Paytm assured that it has consistently provided the necessary information, documents, and explanations to the authorities and continues to do so as required. Notably, Paytm Payments Bank Limited clarified that it does not undertake Outward Foreign Remittance. This statement was in response to reports suggesting a potential case registered by the ED against Paytm for violating FEMA regulations.
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