Paytm's Stock Surges Amid ED's FEMA Violation Notice

Paytm, owned by One97 Communications, saw its stock rise nearly 2% after initial losses due to an ED notice for alleged FEMA rule violations involving the company and its subsidiaries. The violations pertain to past investment transactions. Paytm assures operations remain unaffected as it seeks legal advice.

Paytm, owned by One97 Communications, witnessed a notable stock recovery, closing nearly 2% higher despite early trading losses. The company faced a slump following news of a notice from the Enforcement Directorate (ED) concerning alleged violations of FEMA rules involving past transactions of Paytm and its subsidiaries.

In early trading, Paytm's stock dipped about 4% on both the NSE and BSE after the ED's notice surfaced. However, it later rebounded, closing at Rs 729.40 on the NSE, showing resilience despite the legal challenges.

The alleged contraventions revolve around investments related to Little Internet and Nearbuy, subsidiaries acquired by Paytm in 2017. The fintech firm clarifies these issues date back to when the companies were not under its control. Paytm stated that customer and merchant services remain unaffected and continues to operate normally.

(With inputs from agencies.)