Paytm shares plunged 5% to hit a lower circuit limit on Wednesday, following the RBI's crackdown on Paytm Payments Bank over compliance issues. Vijay Shekhar Sharma stepped down as chairman of Paytm Payments Bank.
Photograph: Francis Mascarenhas/Reuters
New Delhi, Feb 28 (PTI) Shares of One97 Communications Ltd, the owner of the Paytm brand, fell 5 per cent to hit a lower circuit limit in the late morning trade on Wednesday.
The stock declined 4.99 per cent to Rs 406.15 -- its lower circuit limit -- on the BSE.
It fell 4.99 per cent to hit the lower circuit limit of Rs 406.20 on the NSE.
Shares of One97 Communications had hit upper circuit limits on Tuesday, Monday, and Friday.
Vijay Shekhar Sharma has stepped down as part-time non-executive chairman of Paytm Payments Bank Limited and the board of the bank has been reconstituted, a filing said on Monday, adding that PPBL will commence the process of appointing a new chairman.
The dramatic turn of events assumes significance in the backdrop of RBI's crackdown on Paytm Payments Bank over persistent non-compliance and continued material supervisory concerns.
Last month, in a regulatory action, the central bank barred PPBL from accepting fresh deposits or top-ups in customer accounts, wallets, FASTags, and other instruments after February 29 -- a deadline that was later extended to March 15.
One97 Communications Ltd (OCL) is the owner of the Paytm brand. One97 Communications holds 49 per cent of the paid-up share capital (directly and through its subsidiary) of PPBL. Vijay Shekhar Sharma has a 51 per cent stake in the bank.
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