Paytm shares tank 4% after circuit revision, ED action

Paytm shares lost 4 percent on February 15, a day after bourses revised the circuit on counter to 5 percent from 10 percent earlier. The fresh revision in the circuit limit comes a day after Paytm shares were locked at their 10 percent lower circuit limit.

The price band has been revised from the existing levels with effect from February 15, 2024, BSE said. Earlier the circuit limit was revised down from 20 percent to 10 percent.

Circuits are generally revised based on the Last Traded Price (LTP) of the stock. Whenever a stock plunges in value drastically, exchanges lower the circuit limits for that particular stock.

Ever since the Reserve Bank of India cracked the whip on Paytm Payments Bank, the stock has hit the lower circuits multiple times. Paytm parent One 97 Communications is down 50 percent since the January 31 crackdown.

At 9:32am, the Paytm shares were trading 3 percent lower at Rs 330.75 on the NSE.

Also read | Paytm crisis: Compliance issues, regulatory overhang keep mutual funds away

The fall in share price also comes after Paytm on February 14 in a clarification issued to exchanges said the Enforcement Directorate has “over time” asked for certain documents that the company has provided.

The company issued the clarification following media reports saying that the Enforcement Directorate had filed a case against the company over alleged FEMA violations.

Paytm, its subsidiaries, and its associate, Paytm Payments Bank, have received notices and requisitions for information, documents, and explanations from the authorities, including the ED, with respect to the customers that may have done business with the respective entities, the company stated.

“The company and its associates have continued to provide such information, documents, and explanations to the authorities as is required by them. Paytm Payments Bank does not undertake outward foreign remittances,” Paytm said.

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