Shares of One97 Communications Ltd, which owns and operates Paytm, on March 1, jumped 5% after the corporate stated the board has accepted the discontinuation of inter-company pacts with Paytm Payments Bank to scale back dependencies.
| Photo Credit: REUTERS
Shares of One97 Communications Ltd, which owns and operates Paytm, on March 1, jumped 5% after the corporate stated the board has accepted the discontinuation of inter-company pacts with Paytm Payments Bank to scale back dependencies.
The inventory climbed 5% to ₹425.45 — its upper circuit limit — on the BSE after falling previously three buying and selling days. Shares of the corporate had fallen by 5.31% within the final three days.
The inventory jumped 4.99% to ₹423.45 — the upper circuit limit — on the NSE.
In traded quantity phrases, 7.97 lakh shares of the corporate had been traded on the BSE and over 46.64 lakh shares on the NSE through the day.
Amid RBI’s motion on its affiliate agency, One97 Communications on March 1 stated the board has accepted the discontinuation of inter-company pacts with Paytm Payments Bank to scale back dependencies.
The transfer assumes significance as Paytm Payments Bank Limited (PPBL) is beneath the RBI’s lens over persistent non-compliance and continued materials supervisory issues.
In a submitting on March 1, One97 Communications stated the corporate and its affiliate entity, Paytm Payments Bank Limited, have launched extra measures to strengthen their strategy in the direction of unbiased operations of PPBL.
“As part of this process to reduce dependencies, Paytm and PPBL have mutually agreed to discontinue various inter-company agreements with Paytm and its group entities,” the BSE submitting stated.
Also, the shareholders of PPBL have agreed to simplify the Shareholders Agreement (SHA) to help PPBL’s governance, it added.
The Board of OCL (One97 Communications Ltd) accepted the termination of agreements and modification of SHA on March 1, 2024.
Paytm had introduced earlier that it could join new partnerships with different banks and take measures to supply seamless companies to its clients and retailers.
In a regulatory motion in January, the RBI barred PPBL from accepting recent deposits or top-ups in buyer accounts, wallets, FASTags, and different devices after February 29 — a deadline that was later prolonged to March 15.
