Jio Financial Shares Tumble Nearly 8% After Refuting Claims Of Paytm Wallet Takeover
Paytm operator One97 Communications Ltd. cannot sell its Paytm Payments Bank business after RBI restrictions.
Shares of Jio Financial Services Ltd. tumbled nearly 8% on Tuesday after it denied claims it would acquire the crisis-hit Paytm's wallet business.
"We have always made and will continue to make disclosures in compliance with our obligations under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015," the company said in an exchange filing.
This comes amid media reports of the Reliance Industries Ltd. arm and HDFC Bank Ltd. being lead contenders to acquire the Paytm Payments Bank business, which caused Jio's stock to surge on Monday.
NDTV Profit had earlier reported that Paytm operator One97 Communications Ltd. cannot sell its Paytm Payments Bank business as recent restrictions on its activities by the Reserve Bank of India do not allow the transfer of business.
The central bank had found major supervisory concerns and persistent non-compliance by Paytm Payments Bank. On Jan. 31, it restricted the payment bank from undertaking any fresh deposit or credit transactions from Feb. 29. After this, One97 Communications said it would be working only with other banks and not its own payment banks.
Shares of Jio Financial Services fell as much as 7.97%, before paring loss to trade 3.42% lower at 9:54 a.m., compared to a 0.39% advance in the NSE Nifty 50.
The relative strength index was at 72, implying the stock is overbought.
