Shares of One97 Communications Ltd, which owns and operates Paytm, on March 1, jumped 5% after the company said the board has approved the discontinuation of inter-company pacts with Paytm Payments Bank to reduce dependencies.
The stock climbed 5% to ₹425.45 — its upper circuit limit — on the BSE after falling in the past three trading days. Shares of the company had fallen by 5.31% in the last three days.
The stock jumped 4.99% to ₹423.45 — the upper circuit limit — on the NSE.
In traded volume terms, 7.97 lakh shares of the company were traded on the BSE and over 46.64 lakh shares on the NSE during the day.
Amid RBI's action on its associate firm, One97 Communications on March 1 said the board has approved the discontinuation of inter-company pacts with Paytm Payments Bank to reduce dependencies.
The move assumes significance as Paytm Payments Bank Limited (PPBL) is under the RBI's lens over persistent non-compliance and continued material supervisory concerns.
In a filing on March 1, One97 Communications said the company and its associate entity, Paytm Payments Bank Limited, have introduced additional measures to strengthen their approach towards independent operations of PPBL.
"As part of this process to reduce dependencies, Paytm and PPBL have mutually agreed to discontinue various inter-company agreements with Paytm and its group entities," the BSE filing said.
Also, the shareholders of PPBL have agreed to simplify the Shareholders Agreement (SHA) to support PPBL's governance, it added.
The Board of OCL (One97 Communications Ltd) approved the termination of agreements and amendment of SHA on March 1, 2024.
Paytm had announced earlier that it would sign up new partnerships with other banks and take measures to provide seamless services to its customers and merchants.
In a regulatory action in January, the RBI barred PPBL from accepting fresh deposits or top-ups in customer accounts, wallets, FASTags, and other instruments after February 29 — a deadline that was later extended to March 15.
