Paytm Parent Denies Reports Of Investigation Or Violation Of Forex Rules

Paytm operator One97 Communications Ltd. has denied reports of investigation or violation of foreign exchange rules by the company or its associate Paytm Payments Bank Ltd.

Reports of the probe are "entirely misleading, baseless and malicious," it said in an exchange filing on Monday.

"This filing is done in the interest of transparency and protecting our reputation, customers, shareholders, and stakeholders from being influenced by unwarranted and speculative stories," it said.

Media reports claimed that the Enforcement Directorate was investigating the company for money laundering activities.

The company also clarified in an exchange filing on Sunday that the ED is not holding any such investigations on the company, its founders or the chief executive officer.

The Reserve Bank of India restricted Paytm Payments Bank from undertaking any fresh deposit or credit transactions after it found major supervisory concerns and persistent non-compliance. Later, One97 Communications said it would be working only with other banks and not its own payments bank from now on.

NDTV Profit had earlier reported that inadequate Know-Your-Customer procedures, which led to transactions worth crores of rupees, was one of the major reasons for the Reserve Bank of India to impose stringent curbs on Paytm Payments Bank.

Shares of Paytm were locked in a lower circuit for the third day and also had 19.4 lakh shares change hands in a pre-market large trade on Monday, according to Bloomberg data.

Shares of Paytm closed 10% lower at Rs 438.35 apiece on the BSE, as compared with a 0.49% decline in the benchmark BSE Sensex.