news details |
|
|
| Paytm Shares plunge over 4% after firm gets ED notice over alleged FEMA violations | | | Agencies
NEW DELHI, Mar 3: Shares of Paytm owner One97 Communications on Monday plunged more than 4 per cent after the enforcement directorate has sent a notice to the fintech firm for the alleged violation of certain FEMA rules by the company and its two subsidiaries with respect to certain investment transactions.
The stock of the company dived 4.39 per cent to Rs 683.55 apiece on the National Stock Exchange (NSE).
On the BSE, it went down by 4.37 per cent to Rs 685 per piece.
The market was trading in the negative zone with the 30-share BSE Sensex benchmark slipped 271.22 points or 0.37 per cent to 72,926.88 in the late morning trade. Also, the NSE Nifty dipped 93.60 points or 0.42 per cent to 22,031.10.
In a regulatory filing on Saturday, Paytm said that it has received a notice from the Enforcement Directorate (ED) for the alleged violation of certain FEMA rules by the company and its two subsidiaries - Little Internet and Nearbuy - with respect to certain investment transactions.
Later, Paytm clarified that the alleged breach pertains to the period when the two companies were not its subsidiaries.
"We hereby inform you that a show cause notice…has been received by the company on February 28, 2025…from the Directorate of Enforcement.
"This is in relation to alleged contraventions for the years 2015 to 2019 of certain provisions of the 'FEMA' by the company, in relation to its acquisition of two subsidiaries namely Little Internet Pvt Ltd (LIPL) and Nearbuy India Pvt Ltd (NIPL), erstwhile Groupon, along with certain directors and officers," the company said in a regulatory filing.
One97 Communications (OCL) said that it has received a FEMA (Foreign Exchange Management Act) rules violation notice from the ED on February 28, which does not specify financial impact but alleges contraventions in respect of aggregate amount of over Rs 611 crore.
According to the break-up shared by the company, OCL transactions amounting to over Rs 245 crore, LIPL's about Rs 345 crore and NIPL about Rs 21 crore have been listed in the alleged breach.
"The alleged contraventions relate to certain investment transactions relating to OCL, LIPL and NIPL," it explained.
"Certain alleged contraventions attributable to two acquired companies - Little Internet Pvt Ltd and NearBuy India Pvt Ltd - pertain to a period when these were not subsidiaries of the Company," the filing said.
Paytm said the matter is being addressed with a focus on resolving it in accordance with applicable laws and there is no impact of this matter on Paytm's services to its consumers and merchants, and all services are fully operational and secure, as always.
"To resolve the matter in accordance with applicable laws and regulatory processes, the Company is seeking necessary legal advice and evaluating appropriate remedies," the filing added.
Paytm had acquired the two companies in 2017.
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
|
|
|
|
 |
|
|
|
|
STOCK UPDATE |
|
|
 |
| BSE
Sensex |
 |
| NSE
Nifty |
|
|
| |
CRICKET UPDATE |
|
|
|
|
| |
| |
|
|
| |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
