New Delhi: Shares of One97 Communications, which operates under the brand Paytm, had a steady start on Friday morning. Paytm The stock rose 16.65, or 4.13%, to 419.95 from its previous close of 403.30.
According to a statement issued on Friday, Paytm and its payments bank unit have recently decided to terminate certain inter-company agreements as part of their efforts to reduce dependency.
However, Paytm did not provide details about the specific agreements being discontinued.
Additionally, Paytm Payments Bank has agreed to streamline its shareholders’ agreement to ensure independent governance. The move comes as the troubled payments company aims to strengthen its operations and increase transparency.
Shares of Paytm-operator One97 Communications Ltd fell 5% in early trade on Thursday after SoftBank affiliate SVF India Holdings Ltd reduced its stake in the company.
SVF India Holdings sold 1.38 crore shares between January 23 and February 26, reducing its stake from 5.01% to 2.83%. The sale was made through an open market transaction, Bloomberg reported.
Vijay Shekhar SharmaPart-time Non-Executive Chairman of Paytm Payments Bank Limited Recently he stepped down as the board of the bank has been reconstituted and the process of appointing a new chairman will start soon.
This development is important in light of reserve Bank of IndiaRBI action against Paytm Payments Bank for non-compliance and supervisory concerns.
On January 31, the RBI issued a directive barring Paytm Payments Bank from accepting new funds, resulting in a reaction in the market.
RBI also restricted banks from top-up of customer accounts, wallets, FASTags and other devices after February 29, the deadline of which was later extended to March 15.
Following the RBI direction, the Enforcement Directorate (ED) initiated a probe into possible forex violations by Paytm Payments Bank. No violations have been found so far, according to a government source cited by Reuters.
However, some shortcomings related to Know Your Customer rules, which verify user profiles, were identified in the investigation.
Additionally, Paytm announced a new partnership with Axis Bank in an effort to maintain some of its popular products and survive the current crisis. The collaboration enables Paytm merchants to continue using the company’s QR codes, Soundbox and card machines to accept payments.
Paytm brand owner One97 Communications Ltd (OCL) holds 49% stake in PPBL, while Vijay Shekhar Sharma holds 51% stake in the bank.
According to a statement issued on Friday, Paytm and its payments bank unit have recently decided to terminate certain inter-company agreements as part of their efforts to reduce dependency.
However, Paytm did not provide details about the specific agreements being discontinued.
Additionally, Paytm Payments Bank has agreed to streamline its shareholders’ agreement to ensure independent governance. The move comes as the troubled payments company aims to strengthen its operations and increase transparency.
Shares of Paytm-operator One97 Communications Ltd fell 5% in early trade on Thursday after SoftBank affiliate SVF India Holdings Ltd reduced its stake in the company.
SVF India Holdings sold 1.38 crore shares between January 23 and February 26, reducing its stake from 5.01% to 2.83%. The sale was made through an open market transaction, Bloomberg reported.
Vijay Shekhar SharmaPart-time Non-Executive Chairman of Paytm Payments Bank Limited Recently he stepped down as the board of the bank has been reconstituted and the process of appointing a new chairman will start soon.
This development is important in light of reserve Bank of IndiaRBI action against Paytm Payments Bank for non-compliance and supervisory concerns.
On January 31, the RBI issued a directive barring Paytm Payments Bank from accepting new funds, resulting in a reaction in the market.
RBI also restricted banks from top-up of customer accounts, wallets, FASTags and other devices after February 29, the deadline of which was later extended to March 15.
Following the RBI direction, the Enforcement Directorate (ED) initiated a probe into possible forex violations by Paytm Payments Bank. No violations have been found so far, according to a government source cited by Reuters.
However, some shortcomings related to Know Your Customer rules, which verify user profiles, were identified in the investigation.
Additionally, Paytm announced a new partnership with Axis Bank in an effort to maintain some of its popular products and survive the current crisis. The collaboration enables Paytm merchants to continue using the company’s QR codes, Soundbox and card machines to accept payments.
Paytm brand owner One97 Communications Ltd (OCL) holds 49% stake in PPBL, while Vijay Shekhar Sharma holds 51% stake in the bank.
