• Source:PTI
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Paytm Shares Today:  Shares of Paytm's parent company One97 Communications rose 5 percent to a third consecutive session high on Tuesday.

As per reports, the major reason behind the recent recovery after a tank of over 65 per cent, is the Enforcement Directorate (ED), which is investigating One97 Communications firm Paytm Payments Bank Ltd (PPBL), has not found any violation of foreign exchange norms so far.

However, reports suggest that the central probe agency has identified some loopholes in Know Your Customer (KYC) norms and issues related to generating suspicious transaction reports.

Last week, the ED officially initiated a probe into PPBL's foreign transactions for alleged violation of foreign exchange norms.

The stock of the crisis-hit Noida-based fintech firm has been hitting the 5 per cent upper circuit limit for the last 3 trading days. On Tuesday, It rose 5 per cent to Rs 376.25 on NSE.

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Reasons Behind Paytm's stock recovery

Shares of One97 Communications rose 5 per cent to hit their top round on Monday after the company announced an agreement with Axis Bank to pursue commercial solutions.

The move will allow Paytm to continue QR, Soundbox and card machine service beyond the March 15 deadline set by the Reserve Bank of India (RBI) to shut down Paytm Payments Bank operations.

Shares of Paytm rose 5 per cent on Friday, three days after the company came under the regulatory scanner for various violations related to its payments banking business.

Shares of One97 Communication took a hit on the exchanges this month after the RBI action. In its January 31 order, the Reserve Bank Of India directed Paytm Payment Bank Limited to stop further deposits, credit transactions or top-ups in any existing customer accounts, prepaid instruments, wallets, FASTags and National Public Mobility Cards after February 29. Later the central bank extended the deadline to March 15.

One97 Communications owns a 49 per cent stake in PPBL but classifies it as a subsidiary of the company.

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