Paytm advances 4.13%, stock trading above 410

Paytm advances 4.13%, stock trading above 410

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NEW DELHI: One97 Communications shares, which operates under brand Paytm, were off a steady start on Friday morning. Paytm share advances 16.65 or 4.13% from its previous close of 403.30 to 419.95.
Paytm and its payments bank unit have recently decided to terminate certain inter-company agreements as part of their efforts to reduce dependencies, according to a statement released on Friday.
However, Paytm did not provide details on specific agreements that are being discontinued.
Additionally, Paytm Payments Bank has agreed to streamline its shareholders’ agreement to ensure independent governance. The move comes as the embattled payments firm aims to strengthen its operations and enhance transparency.
Shares of Paytm-operator One97 Communications Ltd. fell by 5% in early trade on Thursday after SVF India Holdings Ltd., a SoftBank affiliate, reduced its stake in the company.
SVF India Holdings sold 1.38 crore shares between Jan. 23 and Feb. 26, bringing down its stake from 5.01% to 2.83%. The sale was conducted through open market transactions, as reported by Bloomberg.
Vijay Shekhar Sharma, the part-time non-executive chairman of Paytm Payments Bank Limited stepped down recently as the bank’s board has been reconstituted, and the process of appointing a new chairman will begin soon.
This development is significant in light of the Reserve Bank of India‘s (RBI) actions against Paytm Payments Bank for non-compliance and supervisory concerns.
On January 31, the RBI issued a directive prohibiting Paytm Payments Bank from accepting new funds, resulting in a market backlash.
RBI also prohibited the bank from top-ups in customer accounts, wallets, FASTags, and other instruments after February 29, with the deadline later extended to March 15.
Enforcement Directorate (ED) following RBI directive, initiated an investigation into potential foreign exchange violations by Paytm Payments Bank. According to a government source quoted by Reuters, no breaches have been discovered thus far.
However, certain lapses related to know-your-customer rules, which verify user profiles, have been identified in the investigation.
Additionally, Paytm announced a new partnership with Axis Bank in an attempt to maintain some of its popular products and survive the current crisis. This collaboration enables Paytm’s merchants to continue using the company’s QR codes, soundbox, and card machines for accepting payments.
One97 Communications Ltd (OCL), the owner of the Paytm brand, holds a 49% stake in PPBL, while Vijay Shekhar Sharma has a 51% stake in the bank.


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