Shares of Paytm fall after the company receives an ED notice for possible FEMA violations.
By : Sandhya
One97 Communications, the business that owns Paytm, saw its shares fall more than 4% on Monday after the enforcement directorate sent a warning to the fintech company alleging that it and its two subsidiaries had violated several FEMA regulations on specific investment activities. On the National Stock Exchange (NSE), the company's stock fell 4.39 percent to ₹683.55 per share. It dropped 4.37 percent to ₹685 per piece on the BSE.
The 30-share BSE Sensex benchmark fell 271.22 points, or 0.37 percent, to 72,926.88 in late morning trading, putting the market in a negative zone. At 22,031.10, the NSE Nifty also fell 93.60 points, or 0.42 percent.
Paytm stated in a regulatory filing on Saturday that the Enforcement Directorate (ED) had sent it a notice about the company's and its two subsidiaries' suspected violations of certain FEMA regulations on specific investment transactions. The purported violation, Paytm later stated, relates to the time when the two businesses were not its subsidiaries.