“Paytm Shares in Focus Amidst ED Case Clarifications; Stock Down 55% Since January 31st”

Paytm shares have been under scrutiny following clarifications regarding an Enforcement Directorate (ED) case. Despite recent developments, the stock has seen a significant decline of 55% since January 31st.

Senior executives of Paytm recently appeared for questioning before the ED regarding alleged irregularities, though no serious issues were reported. Paytm clarified that its Payments Bank Limited does not engage in Outward Foreign Remittance, responding to reports suggesting an ED case under FEMA violation.

Over time, Paytm and its subsidiaries have received notices and requests for information from authorities, including the ED, regarding customers who may have transacted with them. Paytm stated that it has provided and will continue to provide the required information and documents to the authorities as needed.

“We have always made and will continue to make disclosures in compliance with our obligations under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015,” Paytm stated. The company’s stock closed 10% lower at Rs 342.35 on Wednesday.

A report by the Times of India indicated that Paytm executives were questioned by the ED, with no serious issues arising. The ED reportedly requested certain documents, prompting the executives to return for further questioning.

Following RBI’s strict restrictions on Paytm Payments Bank on January 31st, the bank was instructed to terminate its nodal account with Paytm and Paytm Payments Services Limited (PPSL) by February 29, 2024. Paytm and the payments bank are in the process of transitioning the nodal account to other banks. Paytm stated its intention to partner with various banks to offer payment products to customers, with Axis Bank expressing willingness to collaborate if permitted by the central bank.

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