Shares of One 97 Communications (Paytm) have witnessed significant fluctuations, prompting attention for two key reasons. The company responded to reports suggesting government scrutiny of Chinese investments in Paytm Payments Services Ltd (PPSL). Additionally, the formation of a group advisory committee, chaired by former Sebi Chairman M Damodaran, aims to enhance regulatory compliance.
Paytm clarified the ownership evolution, emphasizing the founder’s increased stake and Ant Financial’s reduced ownership to less than 10% in July 2023. The altered ownership structure negates the qualification for beneficial ownership from China, debunking misleading perceptions.
Despite recent share declines, Paytm’s regulatory commitment is underscored by the newly established group advisory committee. Comprising seasoned professionals like M.M. Chitale and R Ramachandran, this committee is poised to fortify regulatory measures and compliance, assuring stakeholders of Paytm’s dedication to governance and restructuring.
As Paytm navigates these developments, investors and industry watchers keenly observe the unfolding dynamics that contribute to the company’s market positioning and regulatory posture.