Paytm Shares Plunge as RBI Takes Drastic Action on Paytm Payments Bank, Revenue Outlook Grim.
Paytm shares experienced a 4% decline on February 15, a day following the revision of circuit limits by bourses from 10% to 5%. This adjustment occurred just after Paytm shares were locked at their 10% lower circuit limit the previous day.
According to the BSE, the circuit limits were updated effective February 15, 2024. Previously, the circuit limit had been reduced from 20% to 10%.
The revision of circuit limits is typically influenced by the Last Traded Price (LTP) of the stock. When a stock undergoes a significant value decrease, exchanges often adjust the circuit limits for that specific stock.
Since the regulatory actions by the Reserve Bank of India on Paytm Payments Bank, the stock has repeatedly hit lower circuits. Paytm’s parent company, One 97 Communications, has witnessed a staggering 50% decline since the crackdown on January 31st.