In another setback for Paytm founder Vijay Shekhar Sharma, the Enforcement Directorate has launched a preliminary investigation into overseas transactions of its banking arm Paytm Payments Bank Ltd (PPBL), said reports.
This comes after an earlier Reuters report claimed that ED had initiated a probe on suspicion of violetions of FEMA (Foreign Exchange Management Act) rules.
Earlier, the company dismissed reports of ED probe saying, “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.”
Following the RBI curbs on the fintech major, the stock of Paytm’s parent company One97 Communications Ltd plummeted by around 55 per cent of its market value. On Wednesday alone, the company lost about 10 per cent of its market value. This comes after global brokerage firm Macquarie downgraded One97 Communications’ rating to ‘Underperform’, cutting its target price from Rs 650 to Rs 275 per share amid significant loss in revenues across segments.
