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Paytm share price hits all-time low amid ED probe against fintech firm
Paytm share price: The shares of Paytm had opened at ₹325.30, lower than previous close of ₹342.
Paytm shares hit all-time low on Thursday amid the Enforcement Directorate probe against the fintech firm following the Reserve Bank of India (RBI) action against Paytm Payments Bank.
The shares of Paytm had opened at ₹325.30, lower than previous close of ₹342. The shares slumped to a 52-week low of ₹325.25, continuing the downward spiral of the stock that was once the highest IPO ever way back in 2021.
The market capitalisation of the company currently stands at ₹20,658 crore. The declining share prices have added more salt to the wounds of Paytm, which is now under Enforcement Directorate investigation after the RBI barred its subsidiary Paytm Payments Bank from accepting new deposits from February 29.
Paytm says it does not undertake Outward Foreign Remittance
The anti-financial crime agency has questioned few officials of Paytm and also received certain documents on the RBI action. The ED is carrying out a preliminary probe before it actually starts a formal investigation into alleged irregularities under Foreign Exchange Management Act.
“One 97 Communications Limited (‘Company”), its subsidiaries and its associate, Paytm Payments Bank Limited, have over time been receiving notices and requisition for information, documents and explanations from the Authorities, including Enforcement Directorate (ED), with respect to the customers that may have done business with the respective entities, and provided the required information, documents and explanations to the Authorities,” the company said in a regulatory filing.
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“The Company and its associate have continued to provide such information, documents and explanations to the Authorities as is being required by them,” it added. stating that the fintech firm does not undertake Outward Foreign Remittance.
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The RBI has asked international payments major Visa and Mastercard to stop card-based commercial payments made by small and large businesses due to concerns over KYC compliance, PTI reported. While Visa has acknowledged to a communication to this effect from the regulator on February 8, a response from Mastercard was awaited.
