Paytm Share Price Declines Amid Regulatory Challenges

Paytm share price witnessed a nearly six percent decline at the opening of trading, following a previous day’s positive close. The fintech firm faced challenges stemming from regulatory issues, impacting investor sentiment.

Paytm Share Trading Performance on Sensex:

On the Sensex, Paytm shares were trading at ₹469.90, experiencing fluctuations from a day high of ₹524. The parent company, One97 Communications Ltd, saw its shares surge by 10 percent before trading began.

Despite a strong start, Paytm’s stock surged to its upper circuit limit of ₹496.75 on the BSE, later settling at ₹496.25 on the NSE. This rebound followed a recent decline in share price, indicating heightened volatility in the market.

Regulatory Challenges Impact Share Price:

Paytm faced regulatory hurdles after the Reserve Bank of India (RBI) announced restrictions on Paytm Payments Bank, prohibiting new deposits after February 29. 

Founder Vijay Shekhar Sharma sought government intervention but was informed that it was a regulatory matter beyond the government’s control.

Meetings with Government and RBI Officials:

Sharma engaged with Finance Minister Nirmala Sitharaman and RBI officials to address the crisis. However, the RBI declined concessions, including migrating accounts to other banks and extending the February 29 deadline.

In response to speculation, Paytm issued a statement denying any ongoing probe by central agencies. 

The company reiterated its commitment to regulatory compliance and digital payment expansion in India, emphasizing its adherence to regulatory guidance.

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