Paytm Stock Stays Steady Amid Regulatory Scrutiny

Shares of One97 Communication (Paytm), remained stable on both BSE and NSE exchanges on Friday. Trading at 391.00, the stock saw a marginal increase of 0.68% or 2.65 points compared to its previous close at 09:27 am.

Earlier in the week, Paytm’s shares experienced a 3.74% decline, settling at 380.45 on Thursday after seeing four consecutive sessions of upper-circuit gains. Despite broader market trends, the stock surged to Rs 395.25 and Rs 395.05 on the BSE and NSE, respectively, on Wednesday.

This recent uptick in Paytm’s stock price marks a significant recovery, with its shares rebounding by over 21% from the previous Thursday. Reports suggest that the ongoing Enforcement Directorate (ED) investigation into Paytm Payments Bank Ltd (PPBL) has not uncovered substantial violations of foreign exchange regulations. However, it did identify some deficiencies in the company’s KYC processes and reporting of suspicious transactions.

The intensified scrutiny on Paytm follows regulatory actions by the Reserve Bank of India (RBI), including directives to halt certain operations of PPBL due to compliance issues. Despite One97 Communications’ 49% stake in the banking entity, it has been affected by the RBI’s stricter oversight.

Also Read: RBI Enforcement Actions Prompt Fintech Scrutiny

Amid growing concerns over customer due diligence, data privacy, and systemic risks, the RBI has ramped up inspections and engagements with fintech firms. This regulatory evolution may lead to heightened compliance and capital requirements for fintech players, potentially driving industry consolidation.