Image Source : PTI Stock market graph
Shares of One97 Communications, the parent company of Paytm, rose 10 per cent to an intraday high of Rs 496.25, bringing relief to investors following a meeting between Paytm founder Vijay Shekhar Sharma and top officials from the Reserve Bank of India and the finance minister, Nirmala Sitharaman.
The stock opened at Rs 461.30, surpassing the previous day’s closing price of Rs 451.60.
In the previous trading session, Paytm shares rebounded after three consecutive days of significant decline. Despite a weak opening, the stock surged by 7.79 per cent to Rs 472.50 on the Sensex. It ultimately closed at Rs 451.60 per share, reflecting a gain of 3.02 per cent.
The surge in stock value follows the Reserve Bank of India’s refusal to grant concessions to Paytm regarding its Payments Bank operations, including the migration of accounts to other banks or an extension of the February 29 deadline. This decision presents a setback for Paytm, necessitating the migration of Payments Bank accounts to third-party banks well before the stipulated deadline to ensure smooth functioning of the payments interface.
In response to the directives issued by the RBI, Paytm made a formal request for an extension of the February 29 deadline and sought clarification regarding the transfer of licences for its wallet business and FASTag operations. However, the meeting between Paytm founder Vijay Shekhar Sharma and RBI officials concluded without any resolution or remedial measures being decided upon.
The crisis prompted a collective response from a group of founders, who reached out to RBI Governor Shaktikanta Das and Finance Minister Sitharaman. They appealed for a review of the regulatory actions imposed on Paytm Payments Bank, emphasising the need to reassess the proportionality of the restrictions. They highlighted the potential impact of these measures not only on the payments bank but also on the fintech ecosystem and the broader economy. Furthermore, they advocated for Paytm to be given an opportunity to address any deficiencies and demonstrate compliance with regulatory requirements.
Amidst these challenges, Paytm clarified that neither the company nor Vijay Shekhar Sharma are under investigation for any probes by the Enforcement Directorate or violations of the Foreign Exchange Management Act (FEMA). Additionally, the company dismissed rumours suggesting negotiations with Mukesh Ambani’s Jio Financial Services for the acquisition of Paytm wallets.
As of 10:17 am, shares of One97 Communications were trading 8.98 per cent higher at Rs 491.65 on the NSE.
READ MORE: Upcoming IPO this week: Rashi Peripherals, Jana Small Finance Bank, Capital Small Finance Bank and more
READ MORE: India will see investment of USD 67 billion in energy sector in next 5-6 years: PM Modi
