Updated February 5th, 2024 at 11:51 IST
Will Paytm Sack Employees Amid Challenges Over RBI Order? Vijay Shekhar Sharma Replies
Paytm Latest News: Vijay Shekhar Sharma urged employees to not worry.
Paytm Latest News: 'Despite facing challenges, there will be no layoffs’, Paytm founder Vijay Shekhar Sharma assured the company employees. Sharma made the remarks during a virtual hour-long call with about 800-900 employees. He urged them to not worry and said that the company is actively working with the RBI to understand and address the issues.
For the unversed, the company is mired in controversy following a recent RBI order that barred Paytm Payments Bank Ltd to not taking any further deposits conducting credit transactions or carrying out top-ups on any customer's accounts, prepaid instruments, wallets, cards for paying road tolls after February 29. Paytm Payments Bank Limited (PPBL) is an associate of One97 Communications Limited (OCL), which holds 49 per cent of the paid-up share capital (directly and through its subsidiary) of PPBL. Sharma has a 51 per cent stake in the bank.
Paytm Fall Continues
Paytm shares on Monday dropped 10 per cent to hit a fresh 52-week low of Rs 438.35 on Monday. Notably, the shares have plunged by almost 45 per cent throughout the last three trading sessions. The stock tanked 10 per cent to Rs 438.35 -- its lowest trading permissible limit for the day -- on the BSE. It plummeted 9.99 per cent to hit its lower circuit limit of Rs 438.50 on the NSE.
In three days, the stock has tumbled over 42 per cent, wiping out Rs 20,471.25 crore, from its market valuation.
No ED Investigation
On the other hand, the company informed that the Enforcement Directorate is neither investigating One97 Communications, owner of Paytm brand, nor its Founder and CEO Vijay Shekhar Sharma for money laundering. The ED had visited the company's premises and some other fintech firms like Razorpay in September 2022 for money laundering investigations against some of the merchants that were using their platforms.
"Neither the Company nor its founder and CEO are being investigated by the Enforcement Directorate regarding inter alia money laundering. In the past, certain merchants/users on our platforms have been subject to enquiries and on those occasions, we have always cooperated with the authorities," Paytm said in a regulatory filing.
The company said it has cooperated with the agencies during any investigations by the authorities on any set of merchants or users in the past.
"We would like to set the record straight and deny any involvement in anti-money laundering activities. We have and continue to abide by Indian laws and take regulatory orders with utmost seriousness," the filing added.
Published February 5th, 2024 at 11:47 IST