Paytm shares fell sharply on Monday, hitting a low of Rs 505.55 per share on the NSE after SEBI issued show-cause notices to founder Vijay Shekhar Sharma and board members for alleged IPO breaches. The stock dropped 8.88 percent during the day before recovering slightly.
Paytm share price was trading at Rs 524.10 per share, down 5.54 percent by the time of publishing. The recent decline is linked to Sharma’s alleged non-compliance with promoter classification norms, a probe initiated by SEBI based on inputs from the Reserve Bank of India (RBI).
In 2024, Paytm shares have declined by 18.17 percent on the BSE, reflecting investor concerns. Over the last year, the stock has delivered negative returns of 41.20 percent, further adding to the challenges facing the company.
The probe into Paytm originates from the RBI’s earlier examination of Paytm Payments Bank (PPB). On January 31, the RBI imposed restrictions on PPB due to ongoing significant supervisory concerns and persistent non-compliance, leading to the closure of most operations by February 29.
As regulatory pressures increase, Paytm shares continue to experience volatility. The company faces a challenging landscape with significant impacts on its stock performance, driven by ongoing scrutiny and operational limitations imposed by regulatory authorities.
