Paytm shares tank 10% to extend losses for 2nd day

New Delhi, February 14

Shares of Paytm’s parent company One97 Communications tanked 10 per cent on Wednesday after reports claimed that a preliminary inquiry has been started against subsidiary Paytm Payments Bank Ltd for alleged FEMA violations.

Falling for the second straight day, Paytm shares dived 10 per cent to settle at the lower circuit limit of Rs 342.15 apiece on the NSE. On the BSE, shares of the crisis-hit fintech company tumbled 9.99 per cent to close at Rs 342.35 per piece. The stock also hit its 52-week low on both BSE and NSE.

As per the market reports, the Enforcement Directorate (ED) has initiated an preliminary inquiry against Paytm Payments Bank Ltd, under the Foreign Exchange Management Act (FEMA).

Additionally, the ED and Financial Intelligence Unit (FIU) have also sought inputs from Reserve Bank of India (RBI), the reports said.