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New Delhi: Shares of One97 Communications which owns the Paytm brand hit the upper circuit for the fourth consecutive session on Wednesday. The stock of the fintech major climbed 5 percent each to Rs 395.25 and Rs 395.05 per piece — its upper circuit limit — on the BSE and NSE, respectively.
In the morning session, the 30-share BSE Sensex gained 27.95 points or 0.04 percent to 73,085.35, while Nifty of the NSE slipped 15.75 points to 22,181.20. The Paytm scrip has rebounded since Friday and gained more than 21 percent from Thursday’s closing level of Rs 325. (Also Read: Unbelievable Scene In Hospital: Man Spotted Consuming Tobacco Despite Oxygen Mask And Medical Tubes; WATCH Video)
The rally in shares of One97 Communication came amid reports that the Directorate of Enforcement (ED), which has been probing crisis-hit fintech company’s arm Paytm Payments Bank Ltd (PPBL), has not found any breaches of the foreign exchange rules so far. (Also Read: Navi Mumbai Woman Cheated Of Rs 1.92 Crore In Online Share Trading Scam)
However, the central agency has found certain lapses in Know-Your-Customer (KYC) norms as well as issues around the generation of suspicious transaction reports.
Last week, ED had initiated a probe into overseas transactions by PPBL for allegedly flouting foreign exchange rules. Shares of One97 Communications surged 5 percent on Tuesday, a day after hitting the upper circuit limit on Monday.
On Friday, shares of Paytm rebounded after three consecutive days of fall amid the company coming under the regulatory scanner for various violations related to its payments bank business.
One97 Communication stock has taken a beating on the exchanges this month after the Reserve Bank of India’s (RBI) action against the company’s arm PPBL.
As per the January 31 order, the RBI asked PPBL to stop further deposits, credit transactions, or top-ups in any customer accounts, prepaid instruments, wallets, FASTags, and National Common Mobility Cards, after February 29.
Later, the central bank extended the deadline till March 15.One97 Communications holds a 49 percent stake in PPBL but classifies it as an associate of the company and not as a subsidiary.
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