Paytm shares resume slide, down 9% today. Here's why

Shares of One 97 Communications Ltd (Paytm) on Thursday resumed its downward journey, after recovering some lost ground in the last two sessions. The stock fell 9.31 per cent to hit a low of Rs 450 on BSE. This was against a 10 per cent rally on Wednesday and a 2.88 per cent rise in the preceding session.

A media report suggested that CDSL, the largest domestic securities depository is conducting an inspection of the customer verification process followed by Paytm Money, the wealth management entity run by Paytm.

As per ET, CDSL is the latest to ramp up checks on the know-your-customer (KYC) process followed by various entities of Paytm, after the Reserve Bank of India’s January 31 directive.

A Paytm spokesperson on Wednesday said: "We have consistently assured that neither Paytm nor any of its associates are under investigation by any regulatory agency. This stance has been further validated by recent statements from senior government officials. Our commitment remains unwavering towards operating in compliance with regulatory guidance and continuously enhancing our processes to further the reach of digital payments across India."

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

The stock gained in the previous two sessions as reports suggested the CEO and founder Vijay Shekhar Sharma met Finance Minister Nirmala Sitharaman and top RBI officials to discuss the company's position. 

It is reported that the CEO sought an extension in the deadline set for Paytm Payments Bank, citing merchant and retail customer interests. Sharma, Reports said, requested the RBI and Sitharaman to push the February 29 time by a month, a Businessline report claimed. In his 10-minute-long meeting with the finance minister, Sharma is believed to be told to sort the matter directly with the RBI since the matter is a regulatory issue.

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