Paytm Shares See 5 Per Cent Surge, Hit Upper Circuit For Third Straight Session

The shares of the crisis-hit fintech company experienced a 5 per cent surge, reaching Rs 376.45 and Rs 376.25 respectively, hitting the upper circuit limit on both the BSE and the NSE

One97 Communications, the parent firm of Paytm, saw another 5 per cent surge in its shares, hitting the upper circuit for the third consecutive session on Tuesday. Reports suggest that the ED, which has been investigating Paytm Payments Bank Ltd (PPBL), a subsidiary of One97 Communications, has not uncovered any breaches of foreign exchange regulations thus far.

However, sources indicate that the ED has identified certain deficiencies in the adherence to know-your-customer (KYC) norms, along with concerns regarding the generation of suspicious transaction reports.

Last week, the ED formally initiated a probe into PPBL's overseas transactions over alleged violations of foreign exchange regulations.

The shares of the crisis-hit fintech company experienced a 5 per cent surge, reaching Rs 376.45 and Rs 376.25 respectively, hitting the upper circuit limit on both the BSE and the National Stock Exchange (NSE).

Meanwhile, the BSE Sensex benchmark gained 37.98 points or 0.05 per cent to 72,746.14, and the NSE Nifty rose by 3.05 points to 22,110.60. The surge in One97 Communications' shares follows the announcement of a collaboration with Axis Bank to ensure the continuation of merchant settlements.

This collaboration aims to sustain operations of Paytm QR, soundbox, and card machines beyond the March 15 deadline set by the Reserve Bank of India (RBI) for the cessation of Paytm Payments Bank operations.

Last Friday, Paytm's shares rose by 5 per cent, rebounding after three days of decline amidst regulatory scrutiny for various violations related to its payments bank business.

The month has been particularly challenging for One97 Communications' stock on the exchanges following regulatory actions by the RBI. In line with the RBI's directive issued on January 31, PPBL was instructed to halt further deposits, credit transactions, or top-ups in customer accounts, prepaid instruments, wallets, FASTags, and National Common Mobility Cards after February 29, with the deadline subsequently extended to March 15.

It's worth noting that while One97 Communications holds a 49 per cent stake in PPBL, it classifies the entity as an associate rather than a subsidiary.