Shares of One 97 Communications Ltd, Paytm's parent company, increased by 10% on Friday, as investors hoped the company would receive approval for its proposal to invest Rs 50 crore in its subsidiary Paytm Payment Services Ltd. (PPSL). The stock jumped 10% to settle at Rs 508.85, its upper circuit limit, on the BSE. On the NSE, it rose 9.99 percent to Rs 509.05, its upper circuit.

On Friday, a senior government official said the inter-ministerial panel that oversees China-linked investments has yet to approve Paytm's proposal to invest in its payment aggregator arm.

Financial Services Secretary Vivek Joshi told PTI that the proposal is still under consideration by the inter-ministerial panel, and a decision is expected soon.

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Paytm, which is in financial trouble, has proposed to invest Rs 50 crore in its wholly-owned subsidiary Paytm Payment Services Ltd. One 97 Communications Ltd. (OCL) has investments in China. As a result, the inter-ministerial panel, which includes representatives from the foreign, home, finance, and industry ministries, is examining whether One 97 Communications Ltd.'s investment proposal for PPSL is by FDI guidelines.

Joshi stated that once the inter-ministerial panel approves it, Paytm may approach the RBI for a payment aggregator license. The Reserve Bank of India will then review their proposal and decide whether or not to grant a license, he added.
In November 2020, Paytm Payments Services Ltd. applied to the Reserve Bank for a license to operate as a payment aggregator under the guidelines on the Regulation of Payment Aggregators and Payment Gateways.

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(With PTI's input)