New Delih: The share worth of Paytm`s guardian firm One 97 Communications Ltd has tumbled by over 20 p.c within the final two days after the Reserve Bank of India (RBI) barred Paytm Payments Bank from onboarding new prospects.
The scrip of the Digital funds firm tumbled 12.2%, extending its stoop amid mounting regulatory woes and a choice by investor DelicateBank`s representatives to depart the corporate`s board.
The firm`s market capitalization slipped under Rs 40,000 crore for the primary time. On the day of its inventory market debut on November 18, 2021, the market capitalization of One 97 Communications Ltd stood at Rs 1.01 lakh crore. The firm has misplaced over Rs 60,000 crore in market capitalization in lower than 4 months.
One97 Communications holds a 49 p.c stake in Paytm Payments Bank (PPBL). The RBI final week directed PPBL to cease opening new accounts amid “material supervisory concerns” noticed within the financial institution. The financial institution has additionally been directed to nominate an IT audit agency to conduct a complete system audit of its IT system. Reports claimed that PPBL’s servers had been sharing data with China-based entities that not directly personal a stake in Paytm Payments Bank.
In its reply to the RBI`s motion, One 97 Communications Ltd stated, “The bank (Paytm Payments Bank) is taking immediate steps to comply with RBI directions, including appointment of a reputed external auditor to conduct a comprehensive System Audit of its IT systems. PPBL remains committed to working with the regulator to address their concerns as quickly as possible.”
Meanwhile, a Reuters report, quoting sources stated that representatives of DelicateBank Group Corp will step down from the boards of Paytm and the guardian of on-line insurance coverage aggregator Policybazaar.
“The decision is part of SoftBank`s global strategy to exit from the boards of most of its listed portfolio companies, said the source, adding that the Japanese tech conglomerate expected it would leave fewer regulatory issues to tackle,” added Reuters.