Indian bourses cut Paytm daily trading limit to 10% after stock rout
New Delhi: India’s stock exchanges have cut the daily share trading limit for digital payments firm Paytm to 10 per cent, from 20 per cent, after a $2 billion rout in the stock following a regulatory crackdown on the company’s banking unit.
The new 10 per cent limits will be applicable from Monday, the Bombay Stock Exchange and the National Stock Exchange said on their websites.
The Indian central bank told Paytm’s banking unit earlier this week to stop accepting fresh deposits in its accounts or popular wallets from March, a move that has far-reaching consequences for how the country’s most popular digital payments app Paytm – which relies on the bank – operates.
Paytm’s market value crashed to $3.7 billion (Rs 307 crores) after it lost $2 billion (Rs 165 crores) on Mumbai bourses this week, with the stock losing 20% – its daily maximum at that time – on both Thursday and Friday.
