One97 Communications, the parent company of Paytm, has announced the formation of a Group Advisory Committee regarding the regulatory and compliance concerns. In a statement, Paytm said that the advisory group will be headed by ex-SEBI boss Meleveetil Damodaran. He “will work closely with the board,” the fintech major said in the statement. According to One97 Communications, this Advisory Group will also include former president of ICAI MM Chitale along with and ex-Andhra Bank CMD R Ramachandran.
The decsion on the formation of the Advisory Group comes after the Reserve Bank of India issued a directive to Paytm affiliate Paytm Payments Bank last week. The central bank had instructed the fintech market leader to gradually cease the majority of its operations, including deposits, credit services, and its widely-used digital wallets, by February 29. The directive cited “persistent non-compliance” as the reason for this action.
Meanwhile, shares of One97 Communications Ltd, the parent company of the Paytm brand, experienced a significant decline of over 15 percent in just two days as investors resumed selling off the stock.
Continuing its downward trend from the previous day, the stock dropped by 6.09 percent to settle at Rs 419.85 on the BSE. In intraday trading, it plummeted by 8.67 percent to Rs 408.30.
Similarly, on the NSE, the company’s shares fell by 6.15 percent to Rs 419.15, with an intraday low of Rs 410, marking an 8.20 percent decrease.
Over the course of two days, the stock witnessed a total decline of 15.48 percent, resulting in a reduction of Rs 4,870.96 crore from its market valuation on the BSE.
On Thursday, shares of One97 Communications Ltd hit the lower circuit limit, dropping by 10 percent, following the cessation of a two-day rally in the stock.
