Paytm Share Price Plummets After RBI Action
π Paytm shares continue to decline following the Reserve Bank of India’s action against Paytm Payments Bank last week. Investors are now in a state of shock as the company’s shares face a downward trend.
π₯ The week started off with a bullish market on Monday, but Paytm shares saw a decline. Paytm, which provides online payment services, is currently embroiled in controversies and is also under investigation for alleged money laundering. The company has made it clear that it is not being investigated in any such matter.
π« RBI has imposed a ban on Paytm from conducting any business, including credit transactions, prepaid devices, wallets, and top-ups, since February 29. This has led to a further decline in Paytm shares.
β¬οΈ Paytm shares are still trading at a loss. As soon as the market opened on the first trading day of the week, Paytm shares hit a 10% lower circuit. The stock continues to hit lower circuits and investors are rushing to sell their shares. Paytm shares opened at INR 438.50 in today’s session. It is worth noting that the stock hit a 52-week high of INR 998.30 on October 20, 2023.
π Paytm shares were hit hard after the Reserve Bank of India imposed a ban on accepting deposits in any customer’s account, wallet, or fastag after February. In the past three trading days, Paytm shares have seen a decline of 42.3%, resulting in a loss of INR 2,050 crore for investors. Furthermore, as per the regulations of the Securities and Exchange Board of India, after the market indices fell by 20-20% for two consecutive days, the circuit limit for Paytm shares was reduced to 10%.
π Amidst the controversies, Paytm clarified on Sunday that the Enforcement Directorate (ED) is not questioning the company or its CEO Vijay Shekhar Sharma regarding money laundering. However, the company acknowledged that some traders and their platforms were questioned. Paytm stated, “We are not involved in any form of money laundering activities. We abide by Indian laws and respect Indian orders. However, RBI has separately sent the entire case to ED.”
πͺ Secretary of Revenue, Sanjay Malhotra, stated that if the Reserve Bank has made any new allegations of money laundering against Paytm, action will be taken as per the law. Paytm’s shares have dropped by 40% in just two days due to RBI’s decision, causing the company’s market value to plummet by $2 billion.
π° News Title: Paytm Share Price 05 February 2024
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