Paytm Shares Fall After Payments Bank Receives Penalty From Financial Intelligence Unit
Paytm's stock fell as much as 1.76% during the day to Rs 416 apiece on the NSE.
Shares of One 97 Communications Ltd. fell over 1.5% in a special trading session on Saturday after Financial Intelligence Unit-India imposed a penalty of Rs 5.49 crore on Paytm Payments Bank Ltd.
The penalty has been imposed for violations of the bank's obligations under the Prevention of Money Laundering Act, 2002, according to a press release.
The FIU-IND observed that the bank engaged in a number of illegal acts, including organising and facilitating online gambling. Money generated from such illegal operations was routed and channelled through bank accounts that were maintained by entities with Paytm Payments Bank.
Paytm's stock fell as much as 1.76% during the day to Rs 416 apiece on the NSE. It was trading 1.11% lower at Rs 418.75 apiece, compared to a 0.25% advance in the benchmark Nifty 50 as of 10:04 a.m.
It has declined 30.72% in the last 12 months. The relative strength index was at s40.7.
six out of the 14 analysts tracking Paytm have a 'buy' rating on the stock, as many as three recommend a 'hold' and five suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 60.8%.
