Explore the latest financial turmoil as Paytm faces a market crisis, with shares hitting an unprecedented all-time low after a 10% lower circuit. Uncover the reasons behind this dramatic downturn and its potential impact on the financial landscape.
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#Paytm #PaytmDown #PaytmShares #StockMarket #Business #Finance #FinanceandBusiness #NirmalaSitharaman #Budget2024 #OneindiaNews
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NewsTranscript
00:00 In a turbulent market week, shares of 197 Communications Ltd, the parent company of
00:06 payment aggregator Paytm, took another hit on Monday, falling by an additional 10%.
00:13 This follows two consecutive drops of 20% on Thursday and Friday, bringing the three-day
00:18 decline to a staggering 42%.
00:21 The stock circuit filter was revised to 10% after the initial drops.
00:26 In response to market speculations, Paytm issued an exchange filing on Sunday, vehemently
00:31 denying any ongoing investigation by the Enforcement Directorate related to anti-money laundering
00:36 activities.
00:37 The company clarified that the recent direction from the Reserve Bank of India (RBI) is part
00:44 of its regular supervisory engagement and compliance processes.
00:48 However, insider sources revealed to the media that major KYC irregularities and false compliance
00:54 submissions were reported on Paytm.
00:57 Additionally, concerns were raised about the payments bank not maintaining an arm's length
01:02 with promoter entities.
01:04 These issues date back to 2018, with observed violations in 2021, and despite engagements
01:10 with the company, deficiencies persisted.
01:13 Transparency concerns arose as complaints submitted by the bank was found to be false
01:19 upon verification on several occasions prompting regulatory actions from the RBI.
01:25 The recent developments led to multiple downgrades by analysts in response to the regulatory
01:30 scrutiny.
01:31 Paytm shares had previously hit an all-time low of Rs 438.35 in November 2022 before rebounding.
01:41 The stock had reached a 52-week high of Rs 998 on October 20, 2023.
01:48 Last month, the stock experienced a 20% decline after the company announced a shift in focus
01:53 towards larger ticket-sized loans and recalibrated its buy now, pay later, which is BNPL business.
02:01 As of now, Paytm shares are down 10% at Rs 438.50, marking a challenging trajectory since
02:08 its IPO debut in 2021 at Rs 2,150, where it has witnessed a substantial decrease of nearly
02:17 80%.
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