Money of 11 lakh retail investors stuck amid Paytm crisis, 514 foreigners also worried; Impact on stock market also
Paytm Crisis: The funds of 514 foreign investors and 11 lakh retail investors are stuck in the Paytm crisis. In addition, Paytm's stock dropped due to investment uncertainty. Additionally, the funds associated with Paytm are stuck in 97 mutual fund schemes.
Shiv Ranjani
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In three trading sessions, Paytm shares have dropped 42% following the RBI's strict measures against Paytm Payments Bank. On Tuesday, though, there was a five per cent increase in the company's shares. The business and its investors are having difficulties despite this growth. The funds of 514 foreign investors and 11 lakh retail investors are stuck in Paytm's shares because the company has consistently disregarded the RBI's warning to fix anomalies in Paytm Payments Bank's operations. In addition, the hard-earned money of investors is mired in 97 mutual fund schemes.
Based on the available statistics, the mutual fund position in Paytm rose to 4.99% during the current fiscal year's December quarter. To 63.27%, the proportion of foreign institutional investors rose by 2.80%. Retail investors' stake rose to 12.85%, a gain of 4.57%. Retail investors: those who contribute up to Rs 2 lakh to a business.
Leading international institutional investors in Paytm, BNP Paribas Arbitrage and Canada Pension Plan, each owns 1% of the company. Each of the mutual fund's six schemes has investments totalling more than Rs 100 crore. Less than Rs 10 crore is invested in each of the 40 programmes.
The Enforcement Directorate and the Financial Intelligence Unit (FIU) have sought a report from the RBI on the strictness imposed on Paytm Payments Bank.
Agencies are investigating whether there has been any violation of money laundering rules in Paytm. Apart from Paytm, agencies are also investigating other payment gateway companies in which Chinese-controlled companies have a stake.
Paytm shares closed higher on Tuesday after falling in the last three trading sessions. After rising as much as 7.79 per cent in intra-day trade on BSE, the company's shares finally closed at Rs 451.60, up 3.02 per cent. With this, the market capital of the company increased by Rs 852.78 crore to Rs 28,680.23 crore.
Paytm CEO Vijay Shekhar Sharma has met RBI officials. In this meeting, discussions were held to address the concerns of the regulator. Sources said Paytm has sought to extend the February 29 deadline for the ban.
