Goldman Sachs has issued a neutral call on Paytm, cutting its target to Rs 450 per share. This adjustment reflects the potential loss of market share in the payments sector, the brokerage said.
Paytm: Indian regulators are cracking down on potential fraud in the financial sector, starting with Paytm. The Reserve Bank of India is getting tougher on customer verification lapses and may take more severe action against Paytm bank, which had backing from Warren Buffett and SoftBank Group Corp.
Paytm crisis: The Reserve Bank of India (RBI) has been cracking down on financial entities in recent years, and the action taken against Paytm is in line with its regulatory processes. The RBI has previously taken disciplinary action against HDFC Bank, Bajaj Finance Limited, and Bank of Baroda for various non-compliance issues. The RBI s message is clear: any signs of stress or breach will invite scrutiny, and if corrective actions are not taken, regulatory restrictions will be imposed.
Paytm saw a large deal in early trade on Feb 7, in which around 21 lakh shares or 0.3 percent of equity worth Rs 103 crore changed hands. The details of the buyer and the seller are not yet known
Reports suggested that Mukesh Ambani’s Jio Financial Services is planning to acquire Paytm’s wallet business. Now, Jio Financial Services’ has revealed in a regulatory filing that it is not in talks with Paytm to acquire the wallet service.