FEMA violations: Paytm shares plunge more than 4% after Enforcement Directorate notice
The Hindu
Paytm owner One97 Communications faces 4% stock plunge after ED notice for FEMA rules violation, impacting ₹611 crore transactions.
Shares of Paytm owner One97 Communications on Monday (March 3, 2025) plunged more than 4% after the Enforcement Directorate (ED) has sent a notice to the fintech firm for the alleged violation of certain Foreign Exchange Management Act (FEMA) rules by the company and its two subsidiaries with respect to certain investment transactions.
The stock of the company dived 4.39% to ₹683.55 apiece on the National Stock Exchange (NSE). On the BSE, it went down by 4.37% to ₹685 per piece.
The market was trading in the negative zone with the 30-share BSE Sensex benchmark slipped 271.22 points or 0.37% to 72,926.88 in the late morning trade. Also, the NSE Nifty dipped 93.60 points or 0.42% to 22,031.10.
In a regulatory filing on Saturday (February 1, 2025), Paytm said it has received a notice from the ED for the alleged violation of certain FEMA rules by the company and its two subsidiaries — Little Internet and Nearbuy — with respect to certain investment transactions.
Later, Paytm clarified that the alleged breach pertains to the period when the two companies were not its subsidiaries. "We hereby inform you that a show cause notice...has been received by the company on February 28, 2025...from the Directorate of Enforcement.
"This is in relation to alleged contraventions for the years 2015 to 2019 of certain provisions of the 'FEMA' by the company, in relation to its acquisition of two subsidiaries namely Little Internet Private Limited (LIPL) and Nearbuy India Private Limited (NIPL), erstwhile Groupon, along with certain directors and officers," the company said in a regulatory filing.
One97 Communications (OCL) said it has received a FEMA rules violation notice from the ED on February 28, which does not specify financial impact but alleges contraventions in respect of aggregate amount of more than ₹611 crore.
Assam's small tea growers urge Tea Board for officers fluent in local languages to enhance communication and support.
Quiz | Easy like Sunday morning: All about frauds and fakers!
Can RBI’s proposal to waive foreclosure charges help micro and small industries? | Explained Premium
RBI proposes to waive foreclosure charges and prepayment penalties on loans for MSEs, aiming for easy financing.
India and EU aim to conclude a free trade agreement by year-end to boost bilateral trade and investments.
Tata Motors and Hyundai report decline, while Maruti Suzuki sees marginal growth; Mahindra, Toyota, and Kia show strong growth.
City Union Bank partners with Chennai Super Kings to launch co-branded credit card, offering exclusive perks for CSK fans.
NMDC reports 18% increase in iron ore production, aiming for 100 MT capacity by 2030 with ₹70,000 crore investment.
Ajay Seth appointed as Secretary of Department of Revenue following Tuhin Kanta Pandey's appointment as SEBI chairman.
February 2025 sees Gross GST collections rise by 9.1% to ₹1.84 lakh crore, with a 8.1% increase in net collections.
PM Modi emphasizes speedy implementation of budget for agriculture and rural development, urging stakeholders to focus on action.
Tuhin Kanta Pandey appointed as SEBI Chairperson, focusing on technology, trust, transparency, and teamwork for institution's growth.
Key infrastructure sectors' output grew by 4.6% in January 2025, with coal, steel, and electricity production increasing.
Commerce Minister Piyush Goyal to negotiate bilateral trade agreement with US, aiming to boost commerce and investments.