Punjab News Network

Sliding Away! Paytm Stock Drops Another 5% Following ED Intervention

<p><strong>Paytm Share Price:</strong> Since the RBI took its harsh stance against Paytm Payments Bank, the company’s shares have been plunging. On Thursday, February 15, the shares fell for the third day in a row, despite the company’s confirmation that it has been fully supporting the requests for explanations from authorities, such as the ED.</p>
<p><img decoding=”async” class=”alignnone wp-image-410464″ src=”https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-sliding-away-paytm-stock-drops-another-5-following-ed-intervention-paytm-1200-2024.jpg” alt=”theindiaprint.com sliding away paytm stock drops another 5 following ed intervention paytm 1200 2024″ width=”995″ height=”663″ title=”Sliding Away! Paytm Stock Drops Another 5% Following ED Intervention 6″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-sliding-away-paytm-stock-drops-another-5-following-ed-intervention-paytm-1200-2024.jpg 510w, https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-sliding-away-paytm-stock-drops-another-5-following-ed-intervention-paytm-1200-2024-150×100.jpg 150w” sizes=”(max-width: 995px) 100vw, 995px” /></p>
<p>A day after Paytm shares were locked at their 10% lower circuit restriction, the circuit limit was revised again.</p>
<p>With effect from February 15, 2024, the price band has been altered from the current values, according to the BSE. Previously, the circuit limit was reduced from twenty percent to ten percent.</p>
<p>Circuits are often updated in accordance with the stock’s Last Traded Price (LTP). Exchanges will decrease the circuit limitations for a stock when its value falls precipitously.</p>
<p>Since the problems started 11 days ago, Paytm has lost over Rs 27,000 crore, or 57% of its worth, as a result of the RBI banning the payments bank that also holds the Paytm wallet.</p>
<p>The fintech said yesterday night in an exchange filing that it has been getting requests and notifications from ED for records, information, and justifications about clients who may have done business with the aforementioned businesses over time.</p>
<p>It stated, “We would also like to clarify that Paytm Payments Bank Limited, our associate, does not undertake Outward Foreign Remittance.”</p>
<p><strong>What Investors Should Know?</strong></p>
<p>Experts advise regular investors to avoid Paytm stock until the regulatory obstacles are removed, given the recent decline in the company’s shares. It was previously reported that the RBI intended to revoke Paytm Payments Bank’s license.</p>
<p>According to international brokerage Macquarie, the stock might drop as low as Rs 275. Right now, Paytm’s largest bear is this one.</p>
<p>“We saw a significant decline in revenue (60–65% over FY25/26E) as we slashed both payments and distribution company revenues. According to our channel checks with partners, moving payment bank customers to other bank accounts or related merchant accounts to other bank accounts will require KYC (Know your customer) to be completed again, indicating that migration within RBI’s deadline of February 29th will be a difficult task, Macquarie analyst Suresh Ganapathy said.</p>