Why Paytm Shares Are Up Today

Shares of One97 Communications (OCL) started the fresh week in green after the company announced getting an extension from the RBI to refile for its payment aggregator license.

What Happened: The Paytm parent on Sunday informed the exchanges that the RBI has given an extension to Paytm Payments Services Limited to reapply for the payment aggregator license. Last year in November the central bank had asked the fintech giant to reapply for the license within 120 days. It had also asked the tech startup to seek the centre’s approval for past OCL’s investments into PPSL, to comply with FDI (foreign direct investment) guidelines.

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RBI has now said that the company can continue providing its payment services as it waits for the government’s decision. After receiving the approval the company will have 15 days to reapply. The company can till then continue providing services to its old customers but is barred from onboarding any new merchants.

The Vijay Shekhar Sharma-led startup assured that the decision does not impact its business and revenue as it can still continue its service for existing clients and the offline business can continue to onboard new merchants and offer them payment services including All-in-One QR, Soundbox, Card Machines, etc.

The company further said that it was hopeful of receiving the necessary approvals in a ‘timely manner’.

Price Action: Paytm shares were up 1.51 % to trade at ₹628.70 as the markets opened on Monday.

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Posted In: Foreign Direct InvestmentOne97 CommunicationsPaytmRBIregulatory updatetech startupVijay Shekhar Sharma

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