Paytm, Jio Financial shares in focus after clarification on wallet biz

Shares of One 97 Communications Ltd (Paytm) and Jio Financial Services Ltd (JFS) will be in focus on Tuesday morning after the demerged financial services arm of Reliance Industries Ltd said it was not in talks with Paytm regarding acquisition of Paytm wallet business and that the news item is speculative.

Paytm shares will also be in focus after the company clarified that either the company or its associate Paytm Payments Bank Limited are not the subject matter of any investigation for violation of foreign exchange rules.

JFS, whose shares rallied 13.91 per cent on Monday, said: "We clarify that the news item is speculative and we have not been in any negotiations in this regard. We have always made and will continue to make disclosures in compliance with our obligations under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015."

Paytm update

Paytm later clarified that the news item was "speculative, baseless and factually incorrect." Paytm said it has been informed by Paytm Payments Bank Limited, its associate company, that they have not been in any negotiations in this regard.

Read more: Paytm shares plunged 10% today, down 43% in 3 days. Here's why

Paytm, which earlier denied any investigation by the Enforcement Directorate on OCL, its associates and management, said the additional media reports suggesting investigation into the violation of foreign exchange rules by Paytm or its associate Paytm Payments Bank Limited (PPBL), were baseless speculations.

"We would like to reiterate that the Company and its associate Paytm Payments Bank Limited are not the subject matter of any such investigation. Such media reports are entirely misleading, baseless and malicious, which harm the interests of all our stakeholders," Paytm said.

Paytm, whose price band limit has been reduced to 10 per cent from 20 per cent earlier, has fallen 43 per cent in the past three sessions.

Earlier Paytm said the RBI restrictions do not impact user deposits in their savings accounts, Wallets, FASTags, and NCMC accounts, where they could continue to use the existing balances. Paytm said it will be working only with other banks, and not with Paytm Payments Bank Limited. Paytm's offline merchant payment network offerings like Paytm QR, Paytm Soundbox, Paytm Card Machine, will continue as usual, where it can onboard new offline merchants as well, Paytm suggested.

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