Paytm Stocks Rise 5%, Reach Upper Circuit for Third Session in a Row

The parent company of Paytm, One97 Communications, experienced a 5% increase in its shares on Tuesday, reaching the upper circuit for the third straight day. According to reports, the ED, which has been looking into Paytm Payments Bank Ltd (PPBL), a One97 Communications subsidiary, has not yet found any evidence of violations of foreign currency laws.

Sources, however, claim that the ED has found certain shortcomings in the compliance with know-your-customer (KYC) guidelines in addition to issues with the creation of suspicious transaction reports.

Because of suspected infractions of foreign exchange restrictions, the ED officially opened an investigation into PPBL’s foreign operations last week.

The fintech business that is facing a crisis saw a 5% increase in its shares, which reached the upper circuit limit on the BSE and the National Stock Exchange (NSE) at Rs 376.45 and Rs 376.25, respectively.

In the meanwhile, the NSE Nifty increased by 3.05 points to 22,110.60, while the benchmark BSE Sensex gained 37.98 points, or 0.05 percent, to 72,746.14. The news that One97 Communications and Axis Bank will be working together to make sure that merchant payments continue to flow has caused the stock to soar.

The purpose of this partnership is to continue operating the Paytm QR, soundbox, and card machines after the Reserve Bank of India (RBI) has set a deadline of March 15th for the closure of Paytm Payments Bank.

Following three days of declines due to regulatory scrutiny for multiple infractions pertaining to its payments bank operations, Paytm’s shares saw a 5% increase last Friday.

One97 Communications’ stock has had a particularly difficult month on the markets due to regulatory steps taken by the RBI. PPBL was directed by the RBI on January 31 to stop making deposits, credits, or top-ups in customer accounts, prepaid cards, wallets, FASTags, and National Common Mobility Cards after February 29. This deadline was then extended until March 15.

Notably, even though One97 Communications has a 49 percent share in PPBL, the company nonetheless considers PPBL to be an associate rather than a subsidiary.