The Bombay Stock Exchange (BSE) on March 22 has asked for
a clarification from One97 Communications Ltd, the operating company of Paytm,
over the sharp fall in its stock prices, reported MoneyControl.

“Exchange has sought clarification from One 97
Communications Ltd on March 22, 2022, with reference to significant movement in
price, in order to ensure that investors have latest relevant information about
the company and to inform the market so that the interest of the investors is
safeguarded,” BSE said, adding that “the reply is awaited”.

Also Read | Paytm shares hit all-time low, trade 75% below listing price

Notably, BSE asking for clarification is not usual.
However, the exchange has not specified what the “significant
movement” is even though the stock is down around 75% from its IPO price.

On Tuesday, Paytm shares touched a fresh all-time low of
Rs 543.90, down 3.8% from the previous close and 74.7% down from its issue
price of Rs 2,150 per share. On its listing day, November 18, 2021, it was
settled down by 27%. The company’s market capitalisation was Rs 35,247 crore
against Rs 1.38 lakh crore at the time of its IPO. One97 Communications has lost more than Rs 1.03 lakh crore in market capitalisation in four months.

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Paytm shares lost a significant portion of their value
after RBI on March 11 barred Paytm Payments bank from onboarding new customers
until further notice. The central bank has directed Paytm Payments Bank to
appoint an audit firm to conduct an audit of its IT system.

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Last week, global brokerage firm Macquarie Capital
Securities cut the target price of One97 Communications to Rs 450, 36% lower
than Rs 700 it had predicted in February.“The recent developments significantly
reduce the probability of getting a banking license to lend, in our view,” the
firm said. Other regulatory headwinds include the digital payments paper
potentially capping wallet charges and tougher BNPL and KYC regulations,” the
Macquarie report added.