Paytm Share Price Declines After Seeking RBI Relief In Rs 611-Crore FEMA Case

Shares of Paytm operator One97 Communication Ltd.'s declines marginally on Thursday after the company filed a compounding application with the Reserve Bank of India, in an effort to settle an ongoing case involving alleged violations of the Foreign Exchange Management Act.

Last year, One97 Communications had received a show-cause notice from the enforcement directorate for alleged contraventions amounting to Rs 611 crore.

The move is aimed at resolving the matter through regulatory channels and avoiding formal adjudication proceedings by the ED, according to people familiar with the matter.

The company has requested the ED to hold off on adjudication while the RBI reviews its compounding application, a person privy to the matter told NDTV Profit.

Shares of Paytm fell as much as 0.60% to Rs 886.15 apiece. They pared losses to trade 0.13% lower at Rs 890.35 apiece, as of 9:29 a.m. This compares to a 0.36% advance in the NSE Nifty 50.

The stock has risen 117.18% in the last 12 months and fallen 12.36% year-to-date. Total traded volume so far in the day stood at 6.18 times its 30-day average. The relative strength index was at 46.06.

Out of 19 analysts tracking the company, nine maintain a 'buy' rating, seven recommend a 'hold' and three suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies an upside of 5.9%.