Paytm Director Vijay Shekhar Sharma resigns: Paytm Shares hit fresh upper circuit limit

Shares of One97 Communications Ltd, which owns the Paytm brand, jumped by 5% on Tuesday, reaching the day’s maximum trading permitted limit.

On the BSE, the stock surged 4.98 percent to Rs.449.30, its upper circuit limit, despite a lacklustre start to trading. The fintech firm’s shares exhibited very erratic tendencies, falling to a day low of Rs.413.55. Later, the stock recovered and traded 1.18 percent higher at Rs.433.

Despite a slow start, the company’s shares rose 4.99 percent to achieve the day’s maximum trading permitted limit of Rs.449.50 on the NSE.

One97 Communications’ shares reached upper circuit limits on both Monday and Friday.

Vijay Shekhar Sharma has stood down as part-time non-executive Chairman of Paytm Payments Bank Limited, and the bank’s board has been reformed, according to a filing on Monday. PPBL will now begin the process of appointing a new chairman.

The sudden turn of circumstances is significant in light of the RBI’s crackdown on Paytm Payments Bank for continuous non-compliance and ongoing substantial supervisory issues.

Last month, the central bank issued a regulatory order prohibiting PPBL from taking new deposits or top-ups in client accounts, wallets, FASTags, and other instruments after February 29 — a deadline that was later extended to March 15.

One97 Communications announced on Monday that its associate entity Paytm Payments Bank Limited (PPBL) has reconstituted its Board of Directors with the appointments of former Central Bank of India chairman Srinivasan Sridhar, retired IAS officer Debendranath Sarangi, former executive director of Bank of Baroda Ashok Kumar Garg, and former IAS officer Rajni Sekhri Sibal.

They recently joined as independent directors, it said.

One97 Communications Ltd (OCL) owns the Paytm brand. One97 Communications owns 49 percent of PPBL’s paid-up share capital (both directly and through its subsidiary). Vijay Shekhar Sharma owns a 51 percent share in the bank.