Paytm shares experienced a 4 percent decline on February 15, a day after stock exchanges adjusted the circuit limit on the counter from 10 percent to 5 percent. Circuit limits, typically based on the Last Traded Price (LTP), are adjusted by exchanges in response to significant fluctuations in a stock’s value.
The downward trend in Paytm’s shares follows regulatory actions against Paytm Payments Bank by the Reserve Bank of India, leading to multiple instances of hitting lower circuits. Parent company One 97 Communications has witnessed a staggering 50 percent decline since the regulatory crackdown on January 31.
This decline coincides with Paytm’s issuance of a clarification to exchanges on February 14, addressing media reports suggesting Enforcement Directorate action over alleged FEMA violations. Paytm stated that it has complied with the Enforcement Directorate’s requests for documents over time.
As of 10:00 am, Paytm shares continued their descent, trading 4.21% lower at ₹327.75.
