Paytm shares hit upper circuit of 5%, recover from record low

Shares of Paytm hit the upper circuit of 5% in the afternoon session today. The stock rose to Rs 341.50 against the previous close of Rs 325.25 on BSE. Market cap of the firm rose to Rs 21,690 crore. Paytm saw 21.65 lakh shares changing hands amounting to a turnover of Rs 72.29 crore on BSE. Earlier, Paytm shares hit a record low for the fourth day in a row today amid stock exchanges BSE and NSE revising the circuit limits lower to 5% from 10% earlier. The revision in circuit limits came into effect from February 15. The stock fell 2% to a low of Rs 318.35 on BSE today. 

The shares of Paytm have turned volatile in the wake of Reserve Bank of India (RBI) restrictions on the Paytm Payments Bank. 

Amid steep volatility, bourses had earlier trimmed the circuit limit for Paytm shares to 10% from 20% after Reserve Bank of India (RBI) imposed restrictions on the Paytm Payments Bank.

The Paytm stock also turned volatile after the fintech major in a clarification to bourses on February 14 said the Enforcement Directorate has "over time" asked for certain documents that the company has provided.

According to a report in The Economic Times, the Enforcement Directorate (ED) quizzed officials of the fintech’s payments arm, Paytm Payments Bank, this week in connection with alleged Foreign Exchange Management Act (FEMA) violations. The company executives provided information and documents to the agency in connection with the probe.

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