Business
Paytm shares start flat on bourses after declining 1.58% on Thursday – Times of India
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NEW DELHI: Shares of One97 Communication, owner of brand Paytm, were trading flat on BSE and NSE on Friday. Shares were trading at 391.00, marking an increase of 0.68% or 2.65 points from its previous close at 09:27 am.
Earlier, shares of Paytm dropped by 1.58% or 6.25 to settle 388.80 on Thursday, after hitting upper-circuit for four consecutive session.The stock prices, on Wednesday rose to Rs 395.25 and Rs 395.05 on the BSE and NSE, respectively, defying broader market trends.
This surge follows Paytm’s recovery from a recent slump, with its stock rebounding more than 21% from last Thursday.
Reports indicate that Enforcement Directorate(ED) found no significant violations of foreign exchange rules in its ongoing investigation into Paytm Payments Bank Ltd (PPBL). However, it came across some lapses in the company’s KYC processes and reporting of suspicious transactions.
The scrutiny on Paytm has intensified as the Reserve Bank of India (RBI) tightens oversight on fintech firms globally. Recent actions by the RBI include directing to cease certain operations of PPBL due to non-compliance issues, affecting One97 Communications despite its 49% stake in the banking entity.
The RBI’s stricter stance comes as concerns over customer due diligence, data privacy, and systemic risks prompt a reevaluation of oversight mechanisms, primarily focusing on digital customer identification practices.
In response, the RBI has increased inspections and meetings with fintech companies, aiming to tighten compliance and ensure the integrity of the financial ecosystem.
The evolving regulatory landscape may lead to higher compliance and capital requirements for fintech firms, potentially resulting in sector consolidation. Industry stakeholders like Ashish Fafadia of Blume Ventures believe this scrutiny will foster compliance and support investment in law-abiding companies.
Earlier, shares of Paytm dropped by 1.58% or 6.25 to settle 388.80 on Thursday, after hitting upper-circuit for four consecutive session.The stock prices, on Wednesday rose to Rs 395.25 and Rs 395.05 on the BSE and NSE, respectively, defying broader market trends.
This surge follows Paytm’s recovery from a recent slump, with its stock rebounding more than 21% from last Thursday.
Reports indicate that Enforcement Directorate(ED) found no significant violations of foreign exchange rules in its ongoing investigation into Paytm Payments Bank Ltd (PPBL). However, it came across some lapses in the company’s KYC processes and reporting of suspicious transactions.
The scrutiny on Paytm has intensified as the Reserve Bank of India (RBI) tightens oversight on fintech firms globally. Recent actions by the RBI include directing to cease certain operations of PPBL due to non-compliance issues, affecting One97 Communications despite its 49% stake in the banking entity.
The RBI’s stricter stance comes as concerns over customer due diligence, data privacy, and systemic risks prompt a reevaluation of oversight mechanisms, primarily focusing on digital customer identification practices.
In response, the RBI has increased inspections and meetings with fintech companies, aiming to tighten compliance and ensure the integrity of the financial ecosystem.
The evolving regulatory landscape may lead to higher compliance and capital requirements for fintech firms, potentially resulting in sector consolidation. Industry stakeholders like Ashish Fafadia of Blume Ventures believe this scrutiny will foster compliance and support investment in law-abiding companies.
