6 Feb 2024 , 11:34 AM
On Monday, One97 Communications Ltd, Paytm’s parent firm, rejected claims that the business or its unit Paytm Payments Bank were being probed for violating foreign currency laws.
Following this development, Paytm’s counter fell to a new 52-week low of ₹395.
However, later in the day, the stock recovered from early morning losses. At around 11.30 AM, Paytm was trading 2.52% higher at ₹449.55, against the previous close of ₹438.50 on NSE.
‘In response to recent misinformation, inaccuracies, and speculation, One97 Communications Limited (OCL), commonly known as Paytm, wishes to clarify its stance. The company aims to directly address the rumors circulating in recent misleading media reports through this statement filed with the exchange.’
The article, which cited sources, did not specify whether particular provisions of the Foreign Exchange Management Act (FEMA), which governs individual and corporate transactions overseas, were under investigation by the Enforcement Directorate.
Paytm released a statement on Sunday, denying rumours that its founder, Vijay Shekhar Sharma, and others are being probed by the federal agency.
‘We want to emphasize that neither the Company nor its affiliate, Paytm Payments Bank Limited, is under investigation. The media reports suggesting otherwise are entirely deceptive, unfounded, and malicious, posing a threat to the interests of all our stakeholders.’
Following multiple violations over the last few years, including the use of the same PAN on multiple occasions, a lack of KYC, and allowing transfers via pre-payment instruments without proper verification, the RBI has decided to prohibit the payments bank from accepting new deposits beginning in March because management has refused to correct the problems despite discussions over the last two years.
For feedback and suggestions, write to us at editorial@iifl.com
Related Tags
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.