Updated February 28th, 2024 at 16:47 IST

Paytm shares drop 5% to hit lower circuit limit

This decline follows a series of upper circuit limits hit by One97 Communications shares in recent trading sessions.

Reported by: Business Desk
Paytm shares drop 5% to hit lower circuit limit | Image:Pexels
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Paytm shares drop: Shares of One97 Communications Ltd, the parent company of Paytm, experienced a 5 per cent decline to hit the lower circuit limit in late morning trade on Wednesday.

The stock fell by 4.99 per cent to Rs 406.15 on the BSE, hitting its lower circuit limit. A similar decline was seen on the NSE, where it dropped 4.99 per cent to Rs 406.20.

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This decline follows a series of upper circuit limits hit by One97 Communications shares in recent trading sessions. The latest development comes amidst crucial changes in Paytm's leadership, with Vijay Shekhar Sharma stepping down as part-time non-executive chairman of Paytm Payments Bank Limited. The bank's board is set to be reconstituted, with PPBL beginning the process of appointing a new chairman.

These changes are particularly notable in light of the Reserve Bank of India's recent actions against Paytm Payments Bank. The RBI has taken regulatory action against PPBL due to persistent non-compliance and material supervisory concerns. Last month, the central bank prohibited PPBL from accepting fresh deposits or top-ups in various customer accounts and instruments after initially setting a deadline of February 29, which was later extended to March 15.

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One97 Communications Ltd (OCL) owns the Paytm brand and holds 49 per cent of the paid-up share capital of PPBL directly and through its subsidiary. Vijay Shekhar Sharma holds a 51 per cent stake in the bank.

As of 12:07 pm, shares of the company were trading 4.99 per cent lower at Rs 406.20 per share.

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(with PTI inputs)

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Published February 28th, 2024 at 13:02 IST