Paytm shares experienced a 5 percent decline on February 15, following the bourses’ decision to revise the circuit limit on the counter from 10 percent to 5 percent. This adjustment occurred a day after Paytm shares were locked at their lower circuit limit of 10 percent.
The revised circuit limit, effective from February 15, 2024, was announced by the BSE, marking a reduction from the previous limit of 10 percent, which had earlier been lowered from 20 percent.
Changes in circuit limits typically occur based on the Last Traded Price (LTP) of the stock. When a stock experiences a significant decrease in value, exchanges often lower the circuit limits to manage volatility.
Following regulatory actions by the Reserve Bank of India against Paytm Payments Bank, the stock has encountered multiple instances of hitting lower circuits. Paytm parent company One 97 Communications has witnessed a 50 percent decline since the crackdown began on January 31.
As of 11:45 am, Paytm shares were trading 5 percent lower at Rs 325.05 on the NSE.
The decline in share price coincided with Paytm’s clarification issued to exchanges on February 14, stating that the Enforcement Directorate had requested certain documents over time, which the company promptly provided.
Responding to media reports of alleged FEMA violations, Paytm clarified that it, along with its subsidiaries and associate Paytm Payments Bank, has received requests for information, documents, and explanations from various authorities, including the ED. The company emphasized its cooperation in furnishing the necessary information and clarified that Paytm Payments Bank does not facilitate outward foreign remittances.
