Shares of One97 Communications, the owner of Paytm, rose 10% to Rs 496.25. After founder Vijay Shekhar Sharma met RBI officials.
Paytm shares recovered after three days of losses, in the previous trading session. One97 Communications shares rose 10% to Rs 496.25 after Paytm founder Vijay Shekhar Sharma met with RBI and finance minister Nirmala Sitharaman to calm investors.
The stock started at Rs 461.30, up from 451.60. The stock rose 7.79% to Rs 472.50 on the Sensex after a poor start. Shares closed at Rs 451.60, up 3.02 percent.
The stock price rose after the Reserve Bank of India refused to let Paytm move accounts or extend its Payments Bank deadline on February 29. Due to this setback, Paytm must shift Payments Bank accounts to third-party banks before the deadline to ensure smooth payments interface operation.
In accordance with RBI standards, Paytm requested an extension of the February 29 deadline and clarity on wallet and FASTag license transfers. The RBI meeting with Paytm founder Vijay Shekhar Sharma ended without a solution.
The founders informed RBI Governor Shaktikanta Das and Finance Minister Sitharaman. They urged regulators should evaluate Paytm Payments Bank limitations for proportionality. They said these moves could impact the payments bank, fintech sector, and economy. They also demanded Paytm to rectify faults and follow rules.
Paytm denied that Vijay Shekhar Sharma or the company were under Enforcement Directorate or Foreign Exchange Management Act investigation. The company denied conversations with Jio Financial Services to buy Paytm wallets.
At 10:17 am on the NSE, One97 Communications shares rose 8.98% to Rs 491.65.
Conclusion
After Paytm founder Vijay Shekhar Sharma met RBI authorities, One97 Communications shares rose 10% to Rs 496.25. The stock price rose after the Reserve Bank of India refused to let Paytm move accounts or extend its Payments Bank deadline on February 29. Paytm officially sought a wallet and FASTag license transfer extension and explanation. The founders requested a regulatory assessment of Paytm Payments Bank and instructed the company to remedy any faults and comply with regulations after the occurrence.
