Paytm shares: 3 reasons why the stock is in focus today

Paytm shares: One97 Communications Ltd (Paytm) will be in focus on Tuesday morning after the Reserve Bank of India (RBI) governor Shaktikanta Das clarified that there was no room for the central bank to review the regulatory action it imposed on Paytm Payments bank. On a report suggesting Paytm was close to winning approval for investment in payments gateway arm, Paytm clarified to stock exchanges that while PPSL had applied to the government for approval of downstream investment made by the company in PPSL, that approval is currently awaited.

Meanwhile, the Paytm stock would also be in news after Axis Bank's Managing Director and Chief Executive Officer Amitabh Chaudhry reportedly said that his bank was ready to work with Paytm if the apex bank allows it to do so.

On January 31, the central bank had ordered Paytm Payments Bank to shut most of its operations, including credit products, deposits and digital wallets due to “persistent non-compliance”. To this Paytm said it would be working only with other banks, and not with Paytm Payments Bank Limited.

Since then, Paytm shares are down 45 per cent, with the scrip closing sharply lower in five of the eight sessions. The stock settled 0.65 per cent higher at Rs 422.60 on Monday. 

Das said the RBI takes all decisions after a lot of consideration and analysis. He said RBI's decisions taken after much consideration and after a lot of thought and not in a casual manner.

"As part of the application, PPSL had also applied to the Government of India for approval of downstream investment made by the Company in PPSL, which is currently awaited. We will update the stock exchanges as and when approval is received. Meanwhile, PPSL continues to serve its existing online merchant partners," Paytm said.

Paytm said the companu has always made and will continue to make disclosures with obligations under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Also read: Stock recommendations by analyst for February 13: Wipro, Kalyan Jewellers and Dr Reddy's