At ₹376, Paytm shares hit upper circuit for third straight session

Shares of Paytm’s parent firm One97 Communications rallied 5% and touched upper circuit for the third straight session

Shares of Paytm's parent firm One97 Communications rallied 5% and touched upper circuit for the third straight session on February 20.

According to reports, the Directorate of Enforcement (ED), which has been probing One97 Communications' arm Paytm Payments Bank Ltd (PPBL), has not found any breaches of the foreign exchange rules so far.

However, the reports said, the central agency has found certain lapses in know-your-customer (KYC) norms as well as issues around generation of suspicious transaction report.

Last week, ED had formally initiated a probe into overseas transactions by PPBL for allegedly flouting foreign exchange rules.

The scrip of crisis-hit fintech company surged 5% each to ₹376.45 and ₹376.25 apiece — its upper circuit limit — on the BSE and NSE.

The 30-share BSE Sensex benchmark gained 37.98 points or 0.05% to 72,746.14, while NSE Nifty rose 3.05 points to 22,110.60. On Monday, shares of One97 communications jumped 5%, hitting its upper circuit, after the company announced its collaboration with Axis Bank for the continuation of merchant settlements.

The move will allow continuity of Paytm QR, soundbox and card machine after the March 15 deadline set by the Reserve Bank of India (RBI) for shutting down operations of Paytm Payments Bank.