Shares of Paytm (One97 Communications) continued to hit lower circuit for the third consecutive day after the Reserve Bank of India (RBI) last week imposed ‘severe’ restrictions on Paytm Payments Bank. Paytm stock fell to Rs 438 today, down another 10% after falling almost 40% in the last two trading sessions, falling from Rs 761 (31st January’s closing price).
Paytm stock has declined over 50% in the last 3 months, eroding wealth of several institutional and retail investors. The company’s market cap also declined below Rs 30,000 crore after the massive fall in the stock amid RBI’s crackdown.
In the latest development, according to reports, RBI found significant KYC irregularities, submission of false compliance by the company. Furthermore, the company in an exchange filing over the weekend said that they categorically deny any investigation by ED on OCL, its associates and/or its Founder & CEO for anti-money laundering activities.
Precisely, the reports are of possible incidents in several accounts of the company and not the company itself and accounts and wallets have been frozen in lakhs of cases by law enforcement agencies, as reported by CNBC-TV18. The report further said that RBI found unusually high number of dormant accounts prone to have been used as mule accounts.
