Hey All,
One 97 Communications Ltd, the owner of the Paytm brand, is making headlines as the #paytm stock witnessed a sharp decline of more than 42% in the past three days. Today, the shares experienced an additional 10% drop, reaching its lower circuit limit at approximately Rs 438/- on the Bombay Stock Exchange (BSE). This decline is attributed to an escalating regulatory crisis, marked by fresh allegations of money laundering and an ongoing investigation by the Directorate of Enforcement (ED). Fortunately, I do not hold any Paytm shares; however, it is disheartening to witness investors consistently losing money as Paytm's stock price continues to trigger lower circuit limits each day.
Here on the chart above you can observe the deep decline in the price of paytm - at one point it was trading above Rs.1k+ and now its almost 50% down. Is it time to grab #paytm? Simple answer just stay away from it as I believe the stock is going to decline further. So what is all the story behind Paytm shares crash...
Story behind Paytm shares crash
Before we understand the story behind the Paytm share crash. We need to first know about Paytm Payments Bank Limited - which is an Indian digital bank that operates as a subsidiary of One 97 Communications, the parent company of Paytm. Paytm Payments Bank was officially launched in November 2017 after receiving approval from the Reserve Bank of India [RBI] to operate as a payments bank. Also we need to note that Paytm has been under ED [Enforcement Directorate] investigation since 2021 for alleged money laundering and illegal betting. All good so far until 31st January where comes the news where - RBI’s crackdown on Paytm Payments Bank: The inside story and RBI barred Paytm Payments Bank Limited from undertaking any banking activities whatsoever — no deposits, no credit transactions, no wallet top ups, no bill payments, nothing — after February 29. So no business whatsoever to be done after February 29 by Paytm bank and hence the share price of #paytm continues to decline. Is it going to be zero - who knows but it is advised to just stay away from #paytm at the moment until things settles down which is very rare to occur.
Paytm shares crash - Stay away from #paytm stock...
#paytm #upi #share #crash #lowercircuit #paytmshare #paymentsbank #paytmpaymentsbank
Have Your Say on Paytm shares crash over 42% in 3 days..
Did you see the Paytm shares crash over 42% in 3 days? The Paytm share continues to fall. Did you know there was a Paytm Block Deal | Morgan Stanley Pte buys 50 lakh shares at ₹487.20 apiece? Stay away from Paytm.. Let me know your views in the comment section below..cheers
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Best Regards