NEW DELHI: Shares of One97 Communications, owner of Paytm, hit upper circuit for the third consecutive day on Wednesday. Paytm shares surged nearly 5% to 395.05 from previous day close of 376.25.
Sensex in early morning trade was up by around 50 points at 73, 108. Nifty climbed around 22 points to 22,221 from its all time high of 22,197 it registered on Tuesday.
Paytm’s shares plunged over 50% following RBI‘s directive on January 31, losing about $3.1 billion in value, however, share hit upper circuit in last three days and rose by 15 %.
An investigation by Enforcement Directorate (ED) into possible Fema violations by Paytm Payments Bank hasn’t found any breaches yet, but it did uncover some lapses in verifying user profiles, reported Reuters citing government source.
There were issues with a suspicious transaction report not being generated by the bank, the source added. The ED is still deciding whether to bring charges for potential violations.
RBI’s action was followed by a breach of the statutory deposit limit of Rs 1,000 crore ($136 million) on payments banks, meant to provide basic banking services to the unbanked and underbanked segments of the population. Customers and merchants of Paytm Payments Bank were instructed to shift their accounts by February 28.
Earlier, Paytm Payments Bank received a 15-day extension to wind-down its operations by March 15 from RBI, and it partnered with Axis Bank to keep some of its services functional including company’s QR codes, soundbox and card machines for accepting payments.
Analysts see the deadline extension and banking partnerships as positive for Paytm, but some remain cautious about regulatory uncertainties.
Thirteen analysts now cover Paytm, with five recommending selling the stock.
Paytm, backed by investors like Alibaba, SoftBank, and Berkshire Hathaway, offers various services, including payments, e-commerce, lending, insurance, and gaming.
Sensex in early morning trade was up by around 50 points at 73, 108. Nifty climbed around 22 points to 22,221 from its all time high of 22,197 it registered on Tuesday.
Paytm’s shares plunged over 50% following RBI‘s directive on January 31, losing about $3.1 billion in value, however, share hit upper circuit in last three days and rose by 15 %.
An investigation by Enforcement Directorate (ED) into possible Fema violations by Paytm Payments Bank hasn’t found any breaches yet, but it did uncover some lapses in verifying user profiles, reported Reuters citing government source.
There were issues with a suspicious transaction report not being generated by the bank, the source added. The ED is still deciding whether to bring charges for potential violations.
RBI’s action was followed by a breach of the statutory deposit limit of Rs 1,000 crore ($136 million) on payments banks, meant to provide basic banking services to the unbanked and underbanked segments of the population. Customers and merchants of Paytm Payments Bank were instructed to shift their accounts by February 28.
Earlier, Paytm Payments Bank received a 15-day extension to wind-down its operations by March 15 from RBI, and it partnered with Axis Bank to keep some of its services functional including company’s QR codes, soundbox and card machines for accepting payments.
Analysts see the deadline extension and banking partnerships as positive for Paytm, but some remain cautious about regulatory uncertainties.
Thirteen analysts now cover Paytm, with five recommending selling the stock.
Paytm, backed by investors like Alibaba, SoftBank, and Berkshire Hathaway, offers various services, including payments, e-commerce, lending, insurance, and gaming.
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