This marks a new share high in the last six months for Paytm
However, the stocks pared some gains to end at INR 534.05 per share, up 7.4% from the previous close
Earlier this week, Paytm’s parent company One97 Communications rolled out an upgraded soundbox device to facilitate payments by tapping a debit or credit card or scanning a QR code
Shares of fintech platform Paytm
rallied more than 9% to touch an intraday high of INR 542 apiece on the BSE today. This marks a new share high in the last six months for Paytm.
However, the stocks pared some gains to end at INR 534.05 per share, up 7.4% from the previous close.
Earlier this week, Paytm’s parent company One97 Communications rolled out an upgraded soundbox device to facilitate payments by tapping a debit or credit card or scanning a QR code.
Back then the company said that the NFC (near field communication) card soundbox would accept digital payments through scanning QR codes from a user’s phone as well as tapping the bank cards.
On the same day (July 30), SEBI chairperson Madhabi Puri Buch said that the markets regulator will ensure adequate oversight to prevent a “Paytm-type contamination”.
“We will not allow a Paytm-type of contamination in our market. We all saw what happened in Paytm. Now, because in the banking system, there is no KRA (KYC Registration Agency) type system. So, the problem of Paytm stays in Paytm. It doesn’t contaminate other banks,” Buch had said.
Last week, it was reported that the company secured approval from the government to invest INR 50 Cr in its payments arm, Paytm Payment Services.
The approval will enable Paytm to apply for an online payment aggregator (PA) licence from the Reserve Bank of India.
At the heart of this, Paytm has been expanding its offerings despite regulatory hurdles.
Last month, Paytm teamed up with online travel agency FlixBus to expand its intercity bus travel services offerings in India.
In the same month, it received an administrative warning from SEBI on related party transactions conducted with Paytm Payment Bank in 2022.
Earlier this year, the Reserve Bank of India (RBI) clamped down on Paytm Payments Bank Ltd (PPBL) for flouting KYC norms and non-compliance with rules. The central bank ordered a number of restrictions on PPBL, including barring it from taking deposits or credit transactions or top ups in any customer accounts, prepaid instruments, wallets, FASTags, National Common Mobility Cards.
At the time, a number of reports said that the RBI took the action against Paytm due to lapses in its KYC processes.
However, Paytm’s troubles didn’t end with the RBI’s actions. In March, the Financial Intelligence Unit-India (FIU-IND) also slapped PPBL with a fine of INR 5.49 Cr for skirting anti-money laundering laws.
According to the finance ministry, PPBL allowed some entities to route illegal activities’ proceeds through its accounts.
Besides, Paytm has also been under SEBI’s scrutiny. It received a show cause notice from market regulator SEBI in relation to the 2.1 Cr employee stock options (ESOP) granted to the company’s founder and CEO Vijay Shekhar Sharma in the fiscal year ended March 2022 (FY22).
Earlier last month, Paytm also got an administrative warning letter from SEBI over related party transactions with PPBL in FY22, which were conducted without due approval of either the audit committee or the shareholders.
Paytm’s consolidated net loss widen to INR 840.1 Cr in the June quarter (Q1) of the financial year 2024-25 (FY25), up 134% year-on-year from INR 358.4 Cr in the year ago-period.
Revenue from operations dropped 36% in Q1 FY25 to INR 1,502 Cr from INR 2,342 Cr in the corresponding quarter last year.
