Crisis-hit Paytm in talks with top India officials after $2.5 billion market cap wipeout

Crisis-hit Paytm in talks with top India officials after $2.5 billion market cap wipeout

A person workouts in a health club close to a barcode for Paytm, an Indian cellphone-based digital cost platform, in New Delhi on November 18, 2021.

Sajjad Hussain | AFP | Getty Images

Financial know-how agency Paytm has been in discussions with the higher echelons of the Indian authorities this week, because it tries to reverse a market rout that wiped some $2.5 billion off its worth.

Paytm’s banking unit has been ordered by the Reserve Bank of India to cease accepting contemporary deposits in its accounts or its digital pockets from March. It’s additionally reportedly being probed by the federal anti-fraud company on attainable violations of overseas alternate legal guidelines.

Two sources acquainted with the matter, who most popular to stay nameless as they weren’t permitted to talk publicly, confirmed to CNBC an earlier Reuters report that Paytm CEO Vijay Shekhar Sharma had met with Finance Minister Nirmala Sitharaman late Tuesday.

One of the sources added that Sharma was informed to satisfy and kind out the difficulty with the RBI because it was basically a regulatory matter. 

The two sources had been divided on the end result of the assembly, with one calling it productive and presumably resulting in one thing optimistic for Paytm over the long term, whereas the opposite stated it was unlikely to provide a good end result.  

The Reuters report on Wednesday advised Paytm had sought an extension on the Feb. 29 deadline from the RBI to cease accepting contemporary deposits. 

The Indian Finance Ministry, the RBI and Paytm didn’t instantly reply to CNBC’s requests for remark. A Paytm spokesperson has denied any violation of overseas alternate legal guidelines, calling them “unfounded and factually incorrect,” in accordance with Reuters. 

Shares of the corporate, listed as One97 Communications on India’s National Stock Exchange, hit a file low earlier in the week. The shares noticed a large three-day sell-off following the RBI’s order final week which worn out greater than $2.5 billion in worth, earlier than a subsequent bounce.

Earlier in the week, Indian billionaire Mukesh Ambani’s Jio Financial Services denied media stories it was shopping for Paytm’s pockets enterprise. Paytm additionally dismissed the stories as “speculative, baseless and factually incorrect.” 

Source link

Related Post

Leave a Reply

Your email address will not be published. Required fields are marked *